BP signs multi-million pound design and engineering contracts for H2Teesside

BP has agreed a statement of principles with the UK government and signed front-end engineering design (FEED) contracts for its proposed H2Teesside blue hydrogen production project.

The statement of principles has been agreed with the Department for Energy Security and Net Zero (DESNZ), which BP said allows H2Teesside to enter final stage negotiations for a low carbon hydrogen agreement, intended to support the production of low carbon hydrogen on Teesside. 

Technip Energies will deliver the FEED contracts for the proposed blue hydrogen production facility with integrated carbon capture, which includes establishing the EPC (Engineering, Procurement, and Construction) execution methodology, which will be completed in 2025.  

Infrastructure solutions company Costain has been selected to design the 31km pipeline distribution infrastructure, which BP said will deliver hydrogen from the blue hydrogen production site to industry, and is also expected to be completed by 2025.

As part of the East Coast Cluster, the integrated blue hydrogen production facility and hydrogen distribution pipeline intends to integrate with other decarbonisation projects in the region.

According to BP, it could capture and send for storage over two million tonnes of CO2 per year.

The project is targeting 1.2GW of hydrogen production, which equates to over 10 per cent of the UK’s 2030 hydrogen production target. It aims to supply a diverse range of customers, including those already established in the region as well as new businesses attracted to low carbon hydrogen produced at scale. 

BP also hopes that H2Teesside can further support economic development and regeneration in Teesside, helping to create construction and operation phase jobs, support local education and skills development, and catalyse a highly skilled UK-based hydrogen ‎and CCS supply chain.‎

In a statement, Andy Lane, VP for hydrogen and CCUS at BP, UK, said: “These agreements mark further critical milestones for H2Teesside as the project continues to move towards EPC contracts and then construction. The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low carbon hydrogen economy.”