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BP confirms 60 MW first phase of Teesside renewable hydrogen project

Highlights

First phase FID due in 2023 for 2025 start

2030 potential for 500 MW electrolysis

Total 1.5 GW Teesside hydrogen ambition

BP has confirmed plans to start operation of a 60 MWe electrolysis plant on Teesside by 2025 producing renewable hydrogen, potentially expanding the plant to 500 MWe by 2030, the oil and gas company said Nov. 29.

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A final investment decision on the ‎HyGreen Teesside project is expected in 2023.‎

"Hygreen Teesside is the latest addition to BP's integrated UK business portfolio, which includes 3 GW ‎gross of offshore wind in the Irish Sea," it said.

BP is also involved in the 1-GW H2Teesside blue hydrogen project with Shell and Equinor, producing the energy carrier by reforming natural gas and capturing the resulting carbon.

"The combined 1.5 GW capacity of HyGreen Teesside and H2Teesside could deliver 30% of the UK ‎government's target of developing 5 GW of hydrogen production by 2030," BP said.

Industries in Teesside ‎account for more than 5% of the UK's industrial emissions and the region is home to five of the country's ‎top 25 carbon emitters.

HyGreen Teesside "is expected to match production to demand ‎and build on experience to drive down costs," BP said.

S&P Global Platts assessed the price of UK PEM electrolysis-based hydrogen (including capex) at GBP17.54/kg Nov. 26, versus GBP5.02/kg for UK blue hydrogen (ATR with CCS, including capex).

Selected BP hydrogen projects:

Project

Capacity (MW)

Location

Country

Technology

Partners

In service date

H2Teesside

1,000

Teesside

UK

Blue

BP, Shell, Equinor

2027

HyGreen Teesside
60/500
Teesside
UK
Green
BP
2025-2030

GetH2

300

Lingen

Germany

Green

RWE, Nowega, BP, OGE

2026

H2-Fifty

250

Rotterdam

Netherlands

Green

BP, Nouryon, Port of Rotterdam

2025

Lingen Refinery

60

Lingen

Germany

Green

BP, Orsted

2023

Castellon

20

Castellon

Spain

Green

BP, Iberdrola, Enagas

2023

Source: S&P Global Platts Analytics Hydrogen Production Asset Database; BP; GetH2

Hydrogen represented a "massive" opportunity for BP, the company's Vice President for Hydrogen Market Development Sally Prickett said at the Platts Hydrogen Markets Europe Conference Nov. 25.

"In a net-zero world, we can see clean hydrogen delivering about 16% or even more of the energy mix, which is about the same as natural gas in today's energy mix. So the opportunity is absolutely massive," she said.

Over the next 10 years, BP would invest in both electrolysis and gas reforming with CCS-based production pathways "to drive the technology and the costs down, and allow the rest of the industry to build," she said.

Prickett emphasized a partnership approach to developing the market, targeting sectors where the potential for decarbonization was greatest. These included refining, chemicals, high-temperature industrial heat, steel production and heavy transport.