BP Net Zero H2Teesside Blue Hydrogen

A pool of international and national oil companies (IOCs) and (NOCs) involving BP, Eni, Equinor, Occidental Petroleum (Oxy), Shell, Total and Lotte Chemical are mobilizing their competences and financial capacities to develop a large scale carbon capture usage and sequestration (CCUS) named BP Net Zero Teesside Blue Hydrogen at one of the largest industrial area on the northeast England.

BP Net Zero H2Teesside Blue Hydrogen History

In partnership with local industry, the Net Zero Teesside will decarbonize a cluster of carbon-intensive businesses such as power generation, steel industry or car manufacturing by as early as 2030. As part of this project, BP is looking to develop a blue hydrogen project named H2Teesside.
This project will benefit from the installations of carbon capture included in the Teesside carbon infrastructure.
The interest of this CCUS project is that it relies in the vicinity of large depleted gas fields offshore the UK North Sea.
The UK government has granted a financing of $3.5 millions for the conceptual study of the project. UK authorities is using Teesside project as a test lab to try different technologies.
Teesside will surely include a hydrogen production unit, a Blue Hydrogen SMR. The hydrogen produced will be used to supply the future transportation system of buses and ships from the region.
BP has signed a memorandum of understanding (MoU) in order to provide clean hydrogen produced via a blue hydrogen plant located at Teesside, with a 1GW of production capacity. The project will be named H2Teesside.
BP has signed the MoU to supply 6 industrials with blue hydrogen : Alfanar Company, Venator, Northern Gas Networks, CF Fertilisers, Mitsubishi Chemical Corporation, Sembcorp Energy UK.
The hydrogen produced will serve for for road transport, aviation, low carbon marine fuels, ammonia, blend with natural gas, etc.
Having this first application for the Carbon Capture and a viable business model is reinforcing BP interest into Teesside project.

— October 2021 —
Teesside project has received the support of the UK government which will focus subsidies to the East Coast Cluster (ECC), as a pilot program for the development of Carbon Capture and Storage. Teesside cluster of project is part of the East Coast Cluster (ECC).

— May 2022 —
Abu Dhabi National Oil Company (ADNOC) invested into the project and will help to boost the project.
H2Teesside is now in pre-Front End Engineering and Design (pre-FEED) and should move to FEED by the end of the year with a final investment decision (FID) expected for 2024.
The project will be developed in two phases:
– 2027 with a 500MW unit
– 2030 full capacity, with a second unit of 500MW

— November 2023 —
BP selected Johnson Matthey (JM) to supply its LCH Technology.
In 2023, the H2Teesside project is the second hydrogen project in UK for which JM’s technology is selected at the FEED stage.

— January 2024 —
BP signed a global contract with Worley to perform the EPCM worldwide for:
– Green hydrogen
– Blue hydrogen
– Lower carbon fuels
– SAF
The project is still at design phase but should move to EPC in 2024.

— March 2024 —
BP selected BASF to supply the gas treating technology.
BASF will supply its OASE white technology to capture CO2.

— August 2024 —
BP selected Costain to perform the FEED for the hydrogen pipeline.
The Teesside hydrogen pipeline that will support H2Teesside should be 31 kilometers long.
This is the second time in 2024 that BP is awarded Costain for its hydrogen project.

— September 2024 —
BP awarded the FEED work for the carbon capture process to Technip Energies.
The EPC work is expected to be launched by 2025, with FID.

— June 2025 —
The UK government is assessing the project’s reliability and is expected to make a decision by July.
However, BP anticipates that the project may be scaled back or canceled.
This decision could be a consequence of BP canceling the HyGreen Teesside project in March 2025.