bp has confirmed it is planning a new large-scale green hydrogen production facility in the North East of England that could deliver up to 500Mwe (megawatt electrical input) of hydrogen production by 2030, and acquired a c. 29% stake in major UK provider of biomethane for heavy goods vehicles.
To be developed in multiple stages, HyGreen Teesside is expected to match production to demand and build on experience to drive down costs.
bp is aiming to start production by 2025, with an initial phase of some 60MWe of installed hydrogen production capacity. A final investment decision on the project is expected in 2023.
bp has also acquired a 28.57% stake in Gasrec, the UK’s largest dual provider of bio-Liquified Natural Gas (LNG) and bio-Compressed Natural Gas (CNG) to road transport.
The company builds, owns and operates biomethane refueling stations, providing renewable solutions to the HGV industry.
Louise Jacobsen Plutt, bp’s senior vice president for hydrogen and CCUS, said of the Teeside project: “Low carbon hydrogen will be essential in decarbonising hard-to-abate industrial sectors including heavy transport. Together, HyGreen and H2Teesside can help transform Teesside into the UK’s green heart, strengthening its people, communities and businesses. This is exactly the type of energy we want to create and more importantly deliver.”
Commenting on the Gasrec aquisition, Carol Howle, EVP Trading and Shipping at bp, said: “Bio-LNG and bio-CNG play a crucial role in the energy transition and decarbonisation of the heavy-freight industry and is another example of how we’re helping decarbonise hard-to-abate sectors.
“We’re excited to work with an industry leader like Gasrec to increase the supply of biomethane for HGV customers. This investment further expands bp’s global renewable gas portfolio, an area which we believe will have an increasingly important role on the path to net zero.”
Image: courtesy Gasrec
