bp has reached significant milestones in its H2Teesside project, a low-carbon hydrogen production plant, by agreeing on a statement of principles with the UK Government and signing front-end engineering design contracts. These developments mark important progress in the project, which aims to play a crucial role in the UK’s hydrogen economy.
The agreement with the Department for Energy Security and Net Zero enables H2Teesside to enter the final stage of negotiations for a low-carbon hydrogen agreement, which is expected to support hydrogen production on Teesside.
Technip Energies has been selected to deliver the FEED for the proposed blue hydrogen production facility, which will include integrated carbon capture. The contract involves establishing the engineering, procurement, and construction (EPC) execution methodology, a detailed schedule, and a robust project cost, with completion targeted for 2025.
Costain, an infrastructure solutions company, has been chosen to design the pipeline infrastructure. The 31-kilometre pipeline network will distribute hydrogen from the production site to various industries. Costain is also expected to complete its FEED work in 2025.
As part of the East Coast Cluster, the H2Teesside project will integrate with other regional decarbonisation initiatives. The facility is expected to capture and store over two million tonnes of CO₂ annually, equivalent to the emissions from heating one million UK households.
With a target of 1.2 GW of hydrogen production, H2Teesside could contribute over 10 percent of the UK’s 2030 hydrogen production goal. The project plans to supply a diverse range of customers, including existing businesses in the region and new enterprises drawn by the availability of low-carbon hydrogen at scale.
In addition to advancing the UK’s hydrogen capabilities, bp’s H2Teesside project is poised to support economic development and regeneration in Teesside. The project is expected to create jobs during both the construction and operational phases, while also promoting local education, skills development, and fostering a highly skilled UK-based hydrogen and carbon capture and storage supply chain.
Hydrogen is one of bp’s five energy transition growth engines, with the company viewing it as a key enabler for decarbonising hard-to-abate industries. bp is focused on selecting and delivering high-quality hydrogen projects that offer strong value and significant impact in the energy transition.
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