ADNOC and Masdar to join bp’s UK hydrogen projects
By:
Tom Russell
24/05/2022
bp
bp has announced a strategic
partnership with ADNOC and Masdar of Abu Dhabi, for its proposed blue and
green hydrogen developments in Teesside in the north-east of England. It
claims that these two projects could deliver 15% of the UK Government’s
recently expanded 10GW target for hydrogen production in 2030.
ADNOC – the UAE’s largest energy company – will take a 25% stake in
the design stage of bp’s blue hydrogen project, H2Teesside. This will
be ADNOC’s first investment in the UK. bp and ADNOC will now advance the
project, initially to the next stage of design, the pre-FEED stage. H2Teesside
is expected to kickstart the UK’s hydrogen economy at scale with the development
of two 500MW hydrogen production units by 2030. The project is targeting
start of operations in 2027.
Masdar – the Abu Dhabi renewable energy company – has also signed a memorandum
of understanding to acquire a stake in bp’s proposed green hydrogen project,
HyGreen Teesside. This project is planned to produce 60MWe (megawatt electrical
input) of hydrogen at start-up in 2025, increasing to up to 500MWe by 2030.
bp will also join ADNOC to evaluate a new blue hydrogen project in Abu
Dhabi, conducting a joint feasibility study for a hydrogen project in the
country. In addition, ADNOC, bp and Masdar have joined with Abu Dhabi Waste
Management Centre (Tadweer) and Etihad Airways to explore production of
sustainable aviation fuels, from hydrogen and municipal waste gasification,
in the UAE.
Bernard Looney, bp’s Chief Executive, said: “By joining forces with
ADNOC and Masdar we are reinforcing the world-leading role that Teesside,
and the UK more widely, can play in developing new supplies of energy,
as well as new skills and supply chains. We’re backing Britain and the
resources, capability and net zero ambition here in the UK make it ideal
for the development of low carbon hydrogen - and together we can help deliver
a significant contribution to the UK’s newly increased hydrogen ambition.
“As well as boosting home-grown energy, the global nature of our partnership
with ADNOC and Masdar will support our plans to decarbonize some of the
most hard-to-abate sectors in the world – like industrial manufacturing,
power and aviation. Partnerships like this reach beyond borders to provide
the new energy solutions the world needs, and I want to applaud Dr Sultan
for his continued commitment to help solve the energy trilemma of providing
the world with secure, affordable and cleaner energy.”
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC
Managing Director and Group CEO, and Masdar Chairman, said: “ADNOC
and Masdar’s deepened partnership with bp is a testament to the UAE
and UK’s longstanding track record of bilateral partnership in sustainability
as well as the UAE’s intent to play a leading role in the fast-growing
clean hydrogen economy both domestically and internationally. To that end,
we welcome the opportunity to collaborate with bp in both the UAE and
UK, laying the groundwork for deeper commercial partnership in the area
of new energies and clean technologies. In the UK, our role in Teesside
will represent ADNOC’s first investment into the UK and help to accelerate
innovation in decarbonization of energy in industrial sectors. Similarly,
the partners’ collaboration in Abu Dhabi is expected to further position
the UAE as a regional leader in low-carbon energies and technology-driven
industrial growth.”
Mohamed Jameel Al Ramahi, Masdar’s Chief Executive, added: “Today’s
announcements will strengthen the strategic partnership between Masdar,
ADNOC and bp and continue to drive clean energy innovation for both the
UAE and the UK. Masdar has been a long-standing investor in the UK’s renewable
energy sector, and we will leverage our expertise in offshore wind and
sustainable aviation fuels to support both nations’ energy transition
while solidifying the UAE’s leadership position in the emerging green
hydrogen economy.”
These new agreements follow from the formation of a strategic partnership
for clean energy solutions in the UK and UAE between bp, ADNOC and Masdar
in September 2021, including the intention to work together to develop
low carbon hydrogen hubs, such as at Teesside. These initiatives are subject
to relevant customary regulatory clearances.