UK-based oil and gas major BP has signed agreements with new potential customers for its proposed clean hydrogen production facility in Teesside, north-east England.
The company signed memorandums of understanding (MoUs) with four new potential customers for hydrogen produced by the facility. Accordingly, these will be used to support and accelerate the development of the Teesside hydrogen hub.
The new agreements are signed with global producers of ammonia CF Fertilisers , UK’s Sembcorp Energy , and leading global manufacturer of chemical products Mitsubishi Chemical Corporation .
These companies want to decarbonise existing operations in Teesside by switching fuel from natural gas to clean hydrogen.
Furthermore, BP has signed an MoU with Alfanar Company to scope the supply of clean hydrogen to its plant. The waste-to-sustainable aviation fuel (SAF) plant is currently under development in Teesside.
H2 Teesside starts production in 2027
Clean hydrogen can lead to the decarbonisation of industries that have high heat requirements or require low carbon feedstocks. Indeed, access to clean hydrogen can reduce emissions, enable low-carbon products, and offer the potential for future fuels.
BP announced plans for a clean hydrogen facility in Teesside back in March. Therefore, the name of the project is H2Teesside.
The facility aims to produce up to one gigawatt of blue hydrogen, which amounts to 20 per cent of the UK’s hydrogen target, by 2030.
It will be operational in 2027, BP says.
BP signed initial agreements with chemicals company Venator and gas distributor Northern Gas Networks . also back in March.
BP’s senior vice president of hydrogen and CCUS Louise Jacobsen Plutt , said: “Teesside has all the attributes of a world-class clean hydrogen hub – the right natural resources, concentrated demand, the potential for hydrogen storage and pipelines, ample access to CCUS and the right skills base. While the impact of investments may be felt most acutely in the north-east, the decarbonization benefit of H2Teesside is expected to be felt countrywide.”