British energy firm BP has submitted a bid for its proposed large-scale green hydrogen production site, HyGreen Teesside and confirmed a range of new deals in the surrounding region.
The HyGreen Teesside project aims to be one of the biggest green hydrogen facilities in the country, aiming to be in the production phase by 2025 with an initial planned phase of 80MWe of installed hydrogen production capacity.
The new facility could play a critical role in supporting the nation’s net-zero targets and intends to deliver up to 5% of the UK’s hydrogen target of 10GW by 2030 when it achieves its intended expansion of 500MWe, BP stated.
Earlier this month, BP confirmed it had submitted a bid for the project to the UK Government Hydrogen Business Model (HBM) and the Net Zero Hydrogen Fund (NZHF). In addition, BP signed four memorandums of understanding (MoUs) with the local industry for the opportunity to use green hydrogen in business and communities, expanding on two agreed MoUs. These include:
-An MoU with Northern Gas Networks (NGN) which ensures BP is the preferred supplier for the majority of hydrogen to NGN’s Hydrogen Village in Redcar from 2025.
-An MoU with Ensus, operator of one of Europe’s largest renewable ethanol facilities at Wilton on Teesside, for the possible use of hydrogen generated by HyGreen Teesside, for the potential use of hydrogen generated by HyGreen Teesside to replace natural gas, highlighting demand from complex sectors.
- An MoU with Tees Valley Lithium which intends to develop one of the first lithium hydroxide processing facilities in Europe, for the potential use of hydrogen to support its target of supplying the world’s lowest carbon lithium hydroxide, supporting the decarbonisation of the production of electric vehicle batteries in Europe.
-A new MoU with Sembcorp Energy UK to supply green hydrogen to explore decarbonisation plans for assets at Wilton International on Teesside.
BP has previously signed MoUs for a potential supply of low carbon hydrogen from HyGreen Teesside of H2Teesside CCUS hydrogen facility with CF Fertilisers and Venator.
Louise Kingham, the head of the country and senior VP of BY Europe explains that they intend to produce green hydrogen that can decarbonise industries, and heavy transport and even provide heat in properties. Kingham believes HyGreen Teesside can transform energy consumption, the economy and local regional skills.
The strong support from customers highlights the need for BP to deliver this project for Teesside and the UK. Kingham highlights that BP’s plans for mobility will drive the UK’s position in accelerating hydrogen and battery-electric technology in transportation. Combined, these can support further economic growth for the region and the domestic hydrogen required in the UK. Earlier this year, Abu Dhabi renewable energy business Masdar signed an MoU to partner on the HyGreen Teesside project.
In addition to HyGreen Teesside, BP plans to develop H2Teesside, of the largest blue hydrogen production facilities in the UK, recently shortlisted for UK government support as part of the BEIS CCUS phase 2 process. These two projects on Teesside could provide up to 15% of the UK government's target of delivering 10GW of hydrogen production by 2030.