BP is one step closer to turning Teesside into a green powerhouse, despite rolling back its green agenda elsewhere.
The FTSE 100 oil company is in the final stages of negotiations with the government over one of the largest blue hydrogen production facilities in the UK.
BP has also signed engineering design contracts for the proposed H2 Teesside project.
BP has entered the final stages of negotiations with the government over one of the UK’s largest blue hydrogen production facilities
These include agreements with engineer Costain, which has been selected to design the pipeline infrastructure, and with Technip Energies, which will support the engineering for the production of blue hydrogen.
H2 Teesside aims to capture and store over 2 million tonnes of CO2 per year, equivalent to the emissions from heating 1 million homes.
Blue hydrogen is a clean fuel made from natural gas. The resulting product can be used in electric vehicles with hydrogen fuel cells that produce energy without harmful emissions.
BP has poured large sums of money into Teesside as part of a plan to invest £18 billion in the UK by 2030.
The project complements BP’s two other planned projects in the area: Net Zero Teesside Power and The Northern Endurance Partnership.
But BP’s rise in Teesside comes amid a broader departure from its green agenda.
Last week, BP announced it will drill a new oil field in the Gulf of Mexico as the company prioritizes returning money to shareholders.
BP CEO Murray Auchincloss has pledged to focus on expanding its oil and gas business.
In doing so, he deviates from the green focus set by his predecessor Bernard Looney. He focused on clean energy, with a strong focus on hydrogen and wind.
H2 Teesside could create around 1,300 jobs during the construction phase, and up to 130 jobs once operational.
Andy Lane, BP UK vice president hydrogen, said: “The project has the potential to play a vital role in decarbonising industry in Teesside, helping to transform the region into a leading hydrogen hub and boosting the UK’s low-carbon hydrogen economy.”