Decarbonisation Technology August 2022 issue

We also expect HyGreen to fuel the development of Teesside into the UK’s first major hydrogen transport hub, paving the way for large-scale decarbonisation of heavy transport, airports, ports, and rail in the UK. To put it into context, the project could provide enough low-carbon hydrogen to power over 10,000 heavy goods vehicles. The project has now entered the pre-FEED (front end engineering design) stage, which will run until early 2023, so we are on track for our delivery schedule and excited about the progress we have made so far. Together, we estimate that our two hydrogen projects in the region – H2Teesside and HyGreen Teesside – will deliver around 1.5 GW of energy by 2030, which is 15% of the UK government’s national target of 10 GW. But these projects are also significant from an international perspective. Hydrogen and CCS in Teesside can be a real showcase and a chance for the region to shine on the world stage. One early example is the interest and support we have received from international partners. We recently announced that ADNOC – the Abu Dhabi energy company – will take a 25% stake in the design stage of H2Teesside. ADNOC is a highly innovative energy company, a long-time partner of bp – and this is its first investment in the UK. And Masdar, the Abu Dhabi renewable energy company, has also signed a memorandum of understanding to acquire a stake in HyGreen Teesside. This is a great boost for the projects – a strong signal of confidence among investors – and good news for the region at the heart of the UK’s ambitions for building a hydrogen sector. But importantly, with these projects, the focus is not solely on global prestige and partners. It is about the people. To really succeed, these projects have to benefit local households and families. They need to create quality jobs that allow people to build their careers and lives in this region. Too often, industrial change brings about dislocation. It leaves communities without workplaces and leaves people without hope. This must not happen again. We need to have a just and fair transition to the low-carbon future. And this region will not only be a source of low-carbon energy – but good-quality, high-skilled jobs.

H2Teesside is estimated to create 1,200 construction jobs by 2027 and more than 600 operational jobs. We also expect Net Zero Teesside Power to provide 3,000 jobs in construction, peaking in 2024, and then 1,000 jobs annually to 2050. We will help train local people in the specialist skills required. That is why, for example, we are supporting and investing in the development of a Clean Energy Education Hub at Redcar & Cleveland College. This will train school leavers, apprentices, and adults in the skills needed for jobs in the kinds of facilities we are building, as well as in wind and solar farms. Our ambition for the region and hydrogen globally is bold, but we are not starting from scratch. We have vast experience gained from engineering, building, and operating some of the world’s most ambitious commercial energy projects. In fact, in the five years from 2016 to 2020, we constructed and launched over 25 major projects in partnership with more than ten national governments worldwide. And our expertise across the value chain and global network means we can offer a breadth of decarbonisation solutions, as highlighted by the diversified energy path we are taking to reach net zero by 2050. We are able to draw on decades of experience in producing and managing grey hydrogen at scale across our refineries. And we have a growing green and blue hydrogen portfolio around the world with a robust pipeline of future projects. Conclusion For hydrogen projects to be a success, we believe you need three key pillars – ample access to natural resources, a set of customers ready to begin decarbonising, and a supportive community and local government in the region in which you are operating. Teesside has all of these in abundance. It is perfectly placed to become a world-leading low-carbon energy hub. We believe it can be and we couldn’t be prouder to be playing our part in that journey.

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Matt Williamson matthew.williamson@se1.bp.com