ADNOC and Masdar to join bp’s UK hydrogen projects

Source: press release, 24 May 2022

Bernard Looney, bp’s chief executive, with Sheikh Khaled bin Mohamed bin Zayed
Bernard Looney, bp’s chief executive, with Sheikh Khaled bin Mohamed bin Zayed (photo: Abu Dhabi Government Media Office)

bp has taken a major step forward in strengthening its strategic partnership with ADNOC and Masdar of Abu Dhabi, bringing international participation to its planned blue and green hydrogen developments in Teesside in the north-east of England.

ADNOC – the UAE’s largest energy company – will take a 25% stake in the design stage of bp’s blue hydrogen project, H2Teesside. This will be ADNOC’s first investment in the UK. bp and ADNOC will now advance the project, initially to the next stage of design, the pre-FEED stage. H2Teesside is expected to kickstart the UK’s hydrogen economy at scale with the development of two 500 MW hydrogen production units by 2030. The project is targeting start of operations in 2027.

Masdar – the Abu Dhabi renewable energy company – has also signed a memorandum of understanding to acquire a stake in bp’s proposed green hydrogen project, HyGreen Teesside. This project is planned to produce 60 MWe (megawatt electrical input) of hydrogen at start-up in 2025, increasing to up to 500 MWe by 2030.

Together, these two projects could deliver 15% of the UK Government’s recently expanded 10 GW target for hydrogen production in 2030.

bp will also join ADNOC to evaluate a new blue hydrogen project in Abu Dhabi, conducting a joint feasibility study for a world-scale, low-carbon hydrogen project in the country. In addition, ADNOC, bp and Masdar have joined with Abu Dhabi Waste Management Centre (Tadweer) and Etihad Airways to explore production of sustainable aviation fuels, from hydrogen and municipal waste gasification, in the UAE.

Bernard Looney, bp’s chief executive says, “By joining forces with ADNOC and Masdar we are reinforcing the world-leading role that Teesside, and the UK more widely, can play in developing new supplies of energy, as well as new skills and supply chains. We’re backing Britain and the resources, capability and net-zero ambition here in the UK make it ideal for the development of low carbon hydrogen – and together we can help deliver a significant contribution to the UK’s newly increased hydrogen ambition.”

“As well as boosting home-grown energy, the global nature of our partnership with ADNOC and Masdar will support our plans to decarbonise some of the most hard-to-abate sectors in the world – like industrial manufacturing, power and aviation. Partnerships like this reach beyond borders to provide the new energy solutions the world needs, and I want to applaud Dr Sultan for his continued commitment to help solve the energy trilemma of providing the world with secure, affordable and cleaner energy,” Looney continues.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, says, “ADNOC and Masdar’s deepened partnership with bp is a testament to the UAE and UK’s longstanding track record of bilateral partnership in sustainability as well as the UAE’s intent to play a leading role in the fast-growing clean hydrogen economy both domestically and internationally. To that end, we welcome the opportunity to collaborate with bp in both the UAE and UK, laying the groundwork for deeper commercial partnership in the area of new energies and clean technologies. In the UK, our role in Teesside will represent ADNOC’s first investment into the UK and help to accelerate innovation in decarbonisation of energy in industrial sectors. Similarly, the partners’ collaboration in Abu Dhabi is expected to further position the UAE as a regional leader in low-carbon energies and technology-driven industrial growth.”

Mohamed Jameel Al Ramahi, Masdar’s chief executive, adds, “Today’s announcements will strengthen the strategic partnership between Masdar, ADNOC and bp and continue to drive clean energy innovation for both the UAE and the UK. Masdar has been a long-standing investor in the UK’s renewable energy sector, and we will leverage our expertise in offshore wind and sustainable aviation fuels to support both nations’ energy transition while solidifying the UAE’s leadership position in the emerging green hydrogen economy.”

These new agreements follow from the formation of a strategic partnership for clean energy solutions in the UK and UAE between bp, ADNOC and Masdar in September 2021, including the intention to work together to develop low carbon hydrogen hubs, such as at Teesside. These initiatives are subject to relevant customary regulatory clearances.