bp’s green hydrogen project HyGreen Teesside has been selected by the Department for Energy Security and Net Zero (DESNZ) to progress to the next stage of negotiations in its first funding round for green hydrogen projects; Hydrogen Allocation Round 1 (HAR1).
This follows the UK Government’s March 2023 announcement that HyGreen was shortlisted for DESNZ’s Hydrogen Business Model (HBM) and Net Zero Hydrogen Fund (NZHF) programmes, which are intended to support commercial deployment of hydrogen projects and kickstart the low carbon hydrogen economy across the UK.
Aiming to start production in 2026, HyGreen Teesside is planned to be one of the UK’s biggest ‘green’ hydrogen facilities. It is initially targeting 80MW of green hydrogen production, with potential further growth to up to 500 MW by 2030, up to 5% of the UK government’s hydrogen target of 10GW.
The project aims to help fuel the development of Teesside, leading the way for large-scale decarbonisation of heavy transport, airports, ports, and rail in the UK. It will also help carbon intensive sectors in the region, such as chemical and process industries, to decarbonise.
“We're excited to have passed another important milestone towards the development of this ground-breaking project. HyGreen Teesside has the potential to help transform energy use, the economy and skills in the region. At bp, we’re backing hydrogen to help Teesside and the UK decarbonise its industry and mobility.”
bp has recently completed a six-week community consultation on HyGreen Teesside, ensuring that local people, businesses and other stakeholders can have their say on the project. As part of the consultation, bp shared its initial design with the public and organised multiple public information events. Having taken on board community views, bp will now submit a finalised planning application to Redcar and Cleveland Borough Council.
HyGreen Teesside aims to be one of the biggest green hydrogen facilities in the UK, targeting production in 2026 with an initial planned phase of 80MW of installed hydrogen production capacity. It is then targeting 500 MW of production by 2030 and could deliver up to 5% of the UK government’s hydrogen target of 10GW by 2030. Green hydrogen is produced by the electrolysis of water, powered by renewable energy.
bp intends to invest up to £18 billion in the UK’s energy system by the end of 2030, demonstrating bp’s firm commitment to the UK, and helping the country to deliver on its bold ambitions to boost energy security and reach net zero. As one of the largest oil and gas producers in the UK, bp intends to continue investing in North Sea oil and gas, while driving down operational emissions. bp is also in action on a range of lower carbon energy investments in the UK, which are expected to bring jobs and develop new skills and capabilities.