BP is set to gain some valuable insight into the willingness of German industry to pay up for locally produced green hydrogen.

The UK-based oil and gas major has called on potential offtakers to register their interest in green hydrogen produced at its LGH2 project at the Lingen refinery in northwest Germany.

Potential buyers can register their initial interest between 16 July and 13 August in the first stage of what BP hopes will develop into a full-blown tender for the green product.

100MW – Electrolyser capacity

Preparatory construction work for the 100MW proton-exchange-membrane electrolyser at Lingen is underway, and BP aims to make its first deliveries in the second half of 2027. Production is expected to ultimately rise to 10,000–12,000t/yr and will be used to decarbonise the main refinery as well as potentially supplying third parties in the region.

The product will be sold as EU-compliant renewable liquid and gaseous transport fuel of non-biological origin.

LGH2 has survived a cull of renewable projects by BP as part of a strategic shift back to its core oil and gas business aimed at boosting returns and a flagging share price. The company took FID on LGH2 in December, with funding support from the state of Lower Saxony and Germany’s federal government under the EU’s Important Projects of Common European Interest scheme, which gives exemptions from EU rules of state aid.

By contrast, BP has shelved its HyGreen project in northern England, which had been expected to scale up to 500MW by 2030.  The company will be hoping the level of interest from industrial offtakers in Germany will vindicate its decision to push ahead with LGH2.

LGH2’s tender will be an important test case for Germany’s green hydrogen sector, which is struggling to scale up in line with targets set out in the country’s national hydrogen strategy. The strategy set a target of 10GW of electrolyser capacity by 2030, while less than 2GW is on track. Following elections in February, financial support for the sector has been scaled back by the coalition government of centre-right CDU/CSU and centre-left SPD, though it is making renewed efforts to streamline planning approval process for hydrogen projects.

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Author: Stuart Penson