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United Arab Emirates investors back bp's Teesside hydrogen project

Two United Arab Emirates firms have backed bp's hydrogen projects on Teesside.

The country's largest energy company - ADNOC - will take a 25% stake in the design stage of bp's blue hydrogen project, while renewable energy specialist Masdar has signed a memorandum of understanding to take a stake in bp's proposed green hydrogen project, HyGreen Teesside.

Together, the projects are expected to deliver about 15% of the Government's recently expanded 10GW target for hydrogen production in 2030.

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ADNOC's investment into H2Teesside - its first in the UK - will now advance the project to the next stage of design for the two 500MW hydrogen production units by 2030 before start of operations in 2027. And bp will also partner with ADNOC to evaluate a new blue hydrogen project in Abu Dhabi.

Meanwhile Masdar's intention to acquire a stake in HyGreen Teesside will spur the project which is designed to produce 60 megawatt electrical input of hydrogen at start-up in 2025, increased to 500 megawatt electrical input by 2030.

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.”

H.E. 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.”

UK Minister for Investment, Lord Grimstone said: “This deal will help us supercharge clean growth by harnessing the expertise of the UK’s renewable energy sector.

“Partnerships like these help level up investment across the country and boost productivity in our high-tech industries. It’s brilliant to see Teesside leading the way towards a net zero future, while also growing the economy and creating hundreds of new jobs.”

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