BP is developing plans for the UK’s largest blue hydrogen production facility, targeting 1 GW of hydrogen production by 2030. The project would capture and send for storage up to 2 MM t of CO₂ per year, equivalent to capturing the emissions from the heating of 1 MM UK households. 

The proposed development, H2Teesside, would be a significant step in developing ‎BP’s hydrogen business and make a major contribution to the UK Government’s target of developing 5 GW of hydrogen production by 2030.  

With close proximity to North Sea storage sites, pipe corridors and existing operational hydrogen storage and distribution capabilities, the area is uniquely placed for H2Teesside to help lead a low carbon transformation, supporting jobs, regeneration and the revitalization of the surrounding area. Industries in Teesside account for over 5% of the UK’s industrial emissions and the region is home to five of the country’s top 25 emitters.  

The project would be located in Teesside in north-east England and, with a final investment decision (FID) in early 2024, could begin production in 2027 or earlier. BP has begun a feasibility study into the project to explore technologies that could capture up to 98% of carbon emissions from the hydrogen production process.  

With large-scale, low cost production of clean hydrogen, H2Teesside could support the conversion of surrounding industries to use hydrogen in place of natural gas, playing an important role in decarbonizing a cluster of industries in Teesside.

Blue hydrogen is produced by converting natural gas into hydrogen and CO₂, which is then captured and permanently stored. H2Teesside would be integrated with the region’s already-planned Net Zero Teesside (NZT) and Northern Endurance Partnership (NEP) carbon capture use and storage (CCUS) projects, both of which are led by BP as operator.  

The project’s hydrogen output could provide clean energy to industry and residential homes, be used as a fuel for heavy transport and support the creation of sustainable fuels, including bio and e-fuels.  

The project would be developed in stages, with an initial 500 MW of blue hydrogen capacity in production by 2027 or earlier and additional capacity to be deployed by 2030 as decarbonization of the industrial cluster and hydrogen demand gathers pace. BP sees potential for further hydrogen demand in Teesside beyond 2030. 

Aiming to accelerate the development of the hydrogen cluster, BP has made a number of agreements with possible partners. 

• BP has signed an MOU with Venator, one of the largest global producers of titanium dioxide pigments and performance additives, to scope the supply of clean hydrogen to its flagship Teesside plant. 
• BP has also signed an MOU with Northern Gas Networks (NGN), the gas distributor for the North of England, to work together to initiate decarbonization of the gas networks in the UK, helping to further decarbonize both industrial customers and residential homes through its gas network. 

Separately, BP has also signed an MOU with Tees Valley Combined Authority (TVCA) to explore the potential for green hydrogen in the region, including the development of Teesside as the UK’s first hydrogen transport hub, as announced by the UK’s Department for Transport in September 2020. Green hydrogen is produced by the electrolysis of water, powered by renewable energy.

The development of businesses in emerging technologies such as ‎hydrogen and CCUS is an integral part of BP's strategy of ‎transforming to an integrated energy company.‎ Hydrogen is expected to play a critical role in decarbonizing the ‎power, industrial and transport sectors, especially those that are hard- or ‎expensive-to-electrify.

Last year, BP and Ørsted signed a LOI to work together to develop a ‎project in Germany for industrial-scale production of green hydrogen, made by the electrolysis of water using ‎renewable power.