Hydrogen on Tees: BP powers ahead with plans for green energy hub

BP continues plans to build the UK’s largest green hydrogen plant on Teesside.

The energy giant is seeking support for the construction of its production facility, called HyGreen, which will be a major boost to the North East of England and its efforts to transform itself into a clean energy hub.

BP has submitted an offer to the UK government for its planned large-scale green hydrogen production facility in Teesside.

Green hydrogen is used to make batteries for electric vehicles, as well as fuel for trucks and buses – which traditionally use diesel – and to heat homes.

The government is expected to make a decision on the preferred bidder before the end of this year.

If given the green light, BP hopes to begin construction on the facility early next year and aims for completion by 2025.

It already has six customers in line, including gas distributor Northern Gas Networks and ethanol producer Ensus.

Hydrogen is a key pillar of the UK’s strategy to reduce UK carbon emissions, and the plant will employ 500 people.

Matt Williamson, vice president at BP, said: “This is about moving energy consumers from natural gas and trucks and buses from diesel to hydrogen.”

BP has pledged £2bn to develop hydrogen projects on Teesside as part of plans to invest £18bn in the UK by 2030.

In addition to HyGreen, BP is also developing a blue hydrogen plant on Teesside, a project called H2Teesside.

Green target: The plans for the hydrogen plant are part of a strategy by CEO Bernard Looney (pictured) to make BP a carbon neutral green energy giant by 2050

It says this will create more than 600 jobs and 12,000 in the supply chain by 2027.

The energy giant is not disclosing how much the two hydrogen projects will cost to develop, but money has been raised from two investors in Abu Dhabi.

Masdar will acquire a stake in HyGreen, while Abu Dhabi National Oil Company will take a 25 percent stake in the blue hydrogen plant.

The two projects are expected to deliver 15 percent of the government’s target for hydrogen production by 2030.

They are also a huge boost to Teesside, which was once a thriving center of iron and steel production.

Struggling with the decline of traditional industry, it has spent decades on large-scale renovation projects to transform the vacant lots and tackle the area’s high unemployment.

Louise Kingham, BP’s head of UK business, said: ‘HyGreen Teesside has the potential to transform energy use, the economy and skills in the local region. Our plans will help to strengthen the UK’s position in pioneering hydrogen and battery-electric technology in transport.

Groundbreaking: BP’s Louise Kingham (pictured) wants to see Britain at the forefront of hydrogen and battery-electric technology in transport

‘These can contribute to economic growth for the region and the homegrown hydrogen the UK needs.’

Teesside is part of the ‘Red Wall’ where the Conservatives won Labor seats in the 2019 elections.

The cabinet wants to show its commitment to the ‘levelling’ agenda and would like to set up a so-called industrial hydrogen cluster in Teesside.

Tees Valley Mayor Ben Houchen said: ‘The plan will play a vital role in a whole range of low-carbon initiatives in Teesside, Darlington and Hartlepool, not least the further development of our hydrogen transport hub.

These will only encourage further investment and create high-quality, well-paid jobs for decades to come.”

Plans for the site are part of CEO Bernard Looney’s strategy to turn BP into a carbon neutral green energy giant by 2050.

BP has increased its investments in low-carbon and renewable energy companies as pressure mounts on polluters to reduce their carbon emissions.

But despite the fact that BP has spent billions of pounds on green investments in recent years, BP still relies heavily on oil and gas in its day-to-day operations.

Until recently, BP’s business in the UK was shrinking as it expanded into other markets.