BP has signed a deal with the UAE’s state-owned Adnoc and Masdar to develop 2GW of blue hydrogen production in the UK and the UAE.

The agreement will see the Emirati firms collaborating on developing the H2Teesside 1GW blue hydrogen facility—on which BP is the lead developer. The other 1GW blue hydrogen facility would be located in the UAE, although a specific project has not been outlined.

“By partnering with the visionary leaders of Adnoc and Masdar, we see a massive business opportunity to generate the clean energy the world wants and needs,” said BP CEO Bernard Looney, speaking at a state visit of Abu Dhabi crown prince Sheikh Mohamed bin Zayed al-Nahyan to the UK.

2GW – Total size of blue hydrogen projects to be developed

H2Teesside aims to start up in 2027 and is planned to capture and store 2mn t/yr CO₂ via the Northern Endurance Partnership.

It forms a key part of the Net Zero Teesside cluster—one of the industrial clusters that will likely receive cash from the UK’s carbon capture and storage (CCS) funding programme.

BP has already signed a number of offtake deals as it looks to develop the facility. FID is expected in early 2024.

A statement by the firms says the deal could “lead to the first international investment” in the facility, without outlining whether Adnoc or Masdar have yet officially taken an investment share.

As part of the same agreement, the BP, Adnoc and Masdar also agreed to work together on sustainable aviation fuels to create a “decarbonised air corridor” between the UK and the UAE.

Mobility and CCUS agreements

In a second, separate deal BP and Masdar agreed to explore opportunities to develop, build and operate sustainable energy and mobility solutions for cities in the UK and the UAE. A third deal also saw Adnoc and BP agree to work to jointly identify areas for potential partnerships in greenfield CCUS projects in Abu Dhabi.

“We see a massive business opportunity to generate the clean energy the world wants and needs” Looney, BP

In its recent hydrogen strategy, the UK outlined a goal to develop 5GW of green or blue hydrogen capacity by 2030.

Adnoc announced plans in May to build a blue ammonia project in Abu Dhabi, and the firm has signed agreements to explore export opportunities with Japanese and South Korean firms.

The firm has also announced plans to build a green ammonia project in Abu Dhabi powered by an 800MW solar power plant.

Adnoc currently produces 300,000mn t/yr of hydrogen and has plans to boost capacity to more than 500,000mn t/yr by 2030.

The UAE's energy ministry and Adnoc formed a hydrogen alliance with sovereign wealth funds ADQ and Mubadala earlier this year to develop the production and export of hydrogen products.

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Author: Tom Young