bp enters final stage of negotiations with UK Government and agrees multimillion-pound design and engineering contracts for H2Teesside
- bp has agreed a statement of principles with the UK Government’s Department for Energy Security and Net Zero (DESNZ), paving the way to start the final stage of detailed negotiations
- Technip Energies has been selected to design the proposed blue hydrogen production facility on Teesside
- Costain has been selected to design the pipeline infrastructure that would distribute hydrogen from H2Teesside to industry
- The contracts represent another important step towards commercial operations
- H2Teesside aims to be one of the UK’s largest blue hydrogen production facilities
Agreeing the statement of principles with DESNZ allows H2Teesside to enter the final stage of negotiations for a low carbon hydrogen agreement, intended to support the production of low carbon hydrogen on Teesside.
Technip Energies will deliver the FEED for the proposed blue hydrogen production facility with integrated carbon capture. The contract includes establishing the EPC execution methodology, a robust schedule and project cost, which will be completed in 2025.
Costain, the infrastructure solutions company, have been selected to design the pipeline infrastructure. The 31km pipeline distribution network would deliver hydrogen from the blue hydrogen production site to industry. Costain is expected to complete FEED in 2025 too.
As part of the East Coast Cluster, the integrated blue hydrogen production facility and hydrogen distribution pipeline intends to integrate with other decarbonisation projects in the region. It could capture and send for storage over two million tonnes of CO₂ per year, which is the equivalent to capturing the emissions from the heating of one million UK households.
The project is targeting 1.2 GW of hydrogen production, which equates to more than 10% of the UK’s 2030 hydrogen production target. It aims to supply a diverse range of customers, including those already established in the region as well as new businesses attracted to low carbon hydrogen produced at scale.
bp’s plans for H2Teesside can further support economic development and regeneration in Teesside. Helping to create jobs in both construction and operation phases, the project will also support local education, skills development and catalyse a highly skilled UK-based hydrogen and CCS supply chain.
Hydrogen is one of bp's five energy transition growth engines. The business believes it will be a key enabler to decarbonize hard-to-abate industry, and is focused on selecting and delivering quality opportunities, by prioritising projects based on value.
Mario Tommaselli, SVP Gas and Low Carbon Energies of Technip Energies, commented:
“Being selected for bp’s H2Teesside project highlights Technip Energies' proven experience in working as a technology integrator on large-scale projects. By leveraging our extensive expertise in hydrogen and carbon capture technologies, we are well-positioned to deliver innovative and scalable solutions that align with the UK’s ambitious decarbonization targets.”
Sam White, managing director of natural resources at Costain, said:
“This exciting project is a step change for UK decarbonisation. Our in-house engineering expertise will design a world-leading network that will safely transport hydrogen to provide industrial users with an alternative to natural gas, a key step in the development of the hydrogen economy. In addition to the environmental benefits, this is a project that will be transformative for Teesside and its people, creating jobs and developing skills throughout the region. In transportation, water, and energy, we’re committed to delivering critical infrastructure that improves lives and prosperity across the North-East of England.”
Andy Lane, VP for hydrogen and CCUS at bp, UK, said:
“These agreements mark further critical milestones for H2Teesside as the project continues to move towards EPC contracts and then construction. The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low carbon hydrogen economy.”
Media enquiries: bppress@bp.com
Notes to editors
About bp
bp has been backing Britain for more than a century – powering journeys, businesses and homes. We’re investing to help build an energy system that is secure, supports net zero and delivers value.
While we’re mainly in oil and gas today, we’re transforming into an integrated energy company, working on plans to expand our bp pulse EV charging network, develop new offshore wind, solar, hydrogen and carbon capture projects and investing in North Sea oil and gas. In 2023 bp contributed an estimated £17.1 billion to UK GDP, supported a total of 81,000 jobs and spent £5.3 billion with UK suppliers.
About Costain
Costain helps to improve people’s lives by creating connected, sustainable infrastructure that enables people and the planet to thrive. We shape, create, and deliver pioneering solutions that transform the performance of the infrastructure ecosystem across the UK’s energy, water, transportation, and defence markets.
We are organised around our customers, anticipating and solving their challenges and helping to improve performance. By bringing together our unique mix of construction, consulting, and digital experts we engineer and deliver sustainable, efficient, and practical solutions.
About Technip
Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in LNG, hydrogen and ethylene as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The Company benefits from its robust project delivery model supported by an extensive technology, products and services offering.