BP has been approved to become the official joint venture partner of Aberdeen City Council, building Scotland’s first scaleable “green” hydrogen facility.
The project is hoped to unlock £700m of economic opportunities for Scotland’s economy by 2030 and is also expected to create thousands of new jobs in Aberdeen and the surrounding area.
The council has not yet identified the site of its new hydrogen plant, but installation and running costs over the next decade are expected to be around £215m.
The Growth and Resources Committee approved the partnership during a session yesterday.
A report to the committee said that by managing the demand of hydrogen across existing local bus fleets, and increasing the production of it at the same time as coordinating supply chain and training, could lower the price of hydrogen and catalyse use by other growth sectors seeking to decarbonise - heat, industry, maritime, and rail.
The commercial hydrogen production, storage and distribution facility in Aberdeen will be powered by renewable energy, with associated training and supply chain support to facilitate uptake by fleet, heat, industry and export.
The report said it is envisaged that the hydrogen facility will be developed in three phases, in response to growing demands for hydrogen.
The Initial production for public sector consumption, including the “provision of a resilient, cost-effective supply of hydrogen on a commercial basis to the market to support both existing and proposed transport projects”.
The project will then expand in the short to medium term to connect to larger volume utilisation of hydrogen - rail, trucks and marine use.
The final phase will see the hydrogen for heat and export part of a whole system approach to supply and demand with an innovation, skills and transition centre supporting the expansion of the local supply chain.
City growth and resources convener, councillor Ryan Houghton, said: “We’re proud that hydrogen is already here in Aberdeen and this significant commercial partnership with BP is set to support our ambitions.”
Council leader Jenny Laing said: “It will help create a cleaner, more sustainable city for local people and it also provides us with the opportunity to create hundreds of skilled jobs and add millions to the Aberdeen economy.”
Louise Kingham, BP’s UK head of country and senior vice president for Europe, added: “BP is committed to providing integrated energy solutions to help cities and corporations decarbonise and this hydrogen hub proposal can help do just that.
“We look forward to working with the local authority to deliver this exciting project, drawing on the skills and expertise of our people and their vast experience delivering complex energy projects.”
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