bp submits bid for flagship green hydrogen project on Teesside as it signs a string of MoUs with customers
- bp has submitted a bid for HyGreen Teesside to UK Government
- Agreed new MoUs with potential off-takers in the Teesside area, reflecting strong customer demand
- Has led group of key companies aiming to help decarbonise heavy transport in the region
bp today submitted a bid for its proposed large-scale green hydrogen production facility, HyGreen Teesside, to the UK government’s Hydrogen Business Model (HBM) and Net Zero Hydrogen Fund (NZHF). Both HMB and NZHF aim to kickstart the low carbon hydrogen economy across the UK and support commercial deployment. bp also confirmed four new Memorandums of Understanding (MoUs) for use of the green hydrogen in business and communities.
HyGreen Teesside aims to be one of the biggest green hydrogen facilities in the UK, targeting production by 2025 with an initial planned phase of 80MWe of installed hydrogen production capacity. It could play an important role in the delivery of the UK’s net zero targets and aims to deliver up to 5% of the UK’s hydrogen target of 10GW by 2030 upon reaching its planned expansion of up to 500MWe.
The project would help fuel the development of Teesside into the UK’s first major hydrogen transport hub by providing enough low carbon hydrogen to power the equivalent of over 10,000 Heavy Goods Vehicles. Its green hydrogen could also be used to power hard-to-abate sectors and heavy industry and heat homes.
Louise Kingham, bp’s UK head of country and senior vice president of Europe, said: “We aim to produce green hydrogen that can help decarbonise industries, heavy transport and even provide heat in homes. And we think HyGreen Teesside has the potential to transform energy use, the economy and skills in the local region. The strong support we’re already seeing from customers reflects the need for us to deliver this for both Teesside and the wider UK. We’re not stopping there – our plans for mobility will also help drive the UK’s position in pioneering hydrogen and battery electric technology in transportation. Together, these can help deliver economic growth for the region and the home-grown hydrogen that the UK needs.”
Growing customer interest
HyGreen Teesside continues to draw strong customer interest in the region. bp also confirmed today that it has signed four new Memorandums of Understanding (MoUs) with local industry for potential use of green hydrogen in business and communities, building on two agreed previously.
- An MoU with Northern Gas Networks (NGN) positions bp as the preferred supplier for the majority of hydrogen to NGN’s Hydrogen Village in Redcar from 2025. This initiative would involve switching the gas supply from natural gas to clean burning hydrogen for around 2,000 homes and businesses in parts of Redcar from 2025.
- An MoU with Ensus, operator of one of Europe’s largest renewable ethanol production plants at Wilton on Teesside, for the potential use of hydrogen produced by HyGreen Teesside to replace natural gas, demonstrating demand from hard-to-abate sectors.
- An MoU with Tees Valley Lithium, which plans to build one of Europe’s first lithium hydroxide processing facilities, for potential use of hydrogen to support its aims of supplying the world’s lowest carbon lithium hydroxide, helping to decarbonise of Europe’s production of electric vehicle batteries.
- And a new MoU with Sembcorp Energy UK for the supply of green hydrogen to explore decarbonisation options for some of its assets at Wilton International on Teesside.
bp has previously signed MoUs for possible supply of low carbon hydrogen from HyGreen Teesside or bp’s H2Teesside CCUS-enabled hydrogen plant with CF Fertilisers and Venator. bp’s planned production projects together with the growing range of potential customers supports its aim of helping to create a low carbon hydrogen centre in the North East of England.
Tees Valley Mayor Ben Houchen said: “This is a hugely welcome next step in getting the transformational HyGreen project off the ground and making it a reality. The scheme will play a vital part in a whole host of low-carbon initiatives across Teesside, Darlington and Hartlepool, not least the continued development of our Hydrogen Transport Hub.
“By signing MoUs with other major players in the cleaner, safer and healthier industries of tomorrow they can now work together to maximise opportunities and share expertise to truly mark us out as the only place to do business in these innovative sectors. Ultimately, though, these developments will only encourage further investment and create high-quality, well-paid jobs for decades to come.”
Grant Pearson, chairman of Ensus UK, said: “The potential for hydrogen to be used in our existing process to further reduce emissions, as well as in combination with current products offers enormous opportunities. We are delighted to be partnering with BP in this initiative which will significantly enhance our overall sustainability."
John Walker, chief executive of Tees Valley Lithium, added: “Tees Valley Lithium is delighted to be partnering with bp in this initiative, which will seek to further decarbonise TVL’s Lithium Hydroxide production at the Wilton International Chemicals Park, in Teesside, UK.
“TVL will source high value intermediate lithium products with a low embedded carbon footprint from around the world and will provide customers in the UK and Europe with an independent and sustainable supply of low-carbon battery-grade Lithium Hydroxide and Lithium carbonate.”
Mark Danter, senior hydrogen strategy manager, for NGN said ‘We’re delighted to work with bp on our proposal to switch the gas supply in parts of Redcar to hydrogen from 2025. Locally produced green hydrogen is vital to our plan and will make parts of Redcar self-sufficient, whilst creating jobs and investment in the area’
Earlier this year, Abu Dhabi renewable energy company Masdar signed a MoU to collaborate on bp’s HyGreen Teesside. The project is also supported by a range of bp green skills initiatives on Teesside, including funding for the new Clean Energy Education Hub at the Redcar and Cleveland College, which will help deliver green skill development opportunities for the community.
Collaborating to decarbonise heavy transport
bp is also leading an international group of companies, freight operators, OEMs and an academic institution in bidding for support from Innovate UK as part of the Zero Emission Road Freight Demonstration (ZERFD) programme. The consortium aims to establish a network of hydrogen refuelling and electric charging hubs, alongside a supply chain based around Teesside. If successful, bp’s ZERFD bid will support the servicing of a core fleet of battery electric and hydrogen fuel cell trucks supplied by HyGreen Teesside to help decarbonise heavy transport in the region.
In addition to HyGreen Teesside, bp also plans to develop H2Teesside, one of the UK’s largest blue hydrogen production facilities recently shortlisted for UK Government support as part of the BEIS CCUS cluster sequencing Phase-2 process. bp’s two proposed projects on Teesside could together deliver up to 15% of the UK Government’s target of developing 10GW of hydrogen production by 2030.