Global energy operator bp has submitted a formal bid to the Government in the hope it will receive support for its proposed green hydrogen facility on Teesside.
HyGreen Teesside is hoped to be operational by 2025, at which point it would initially deliver 80MWe of installed hydrogen production capacity. bp hopes to provide 5% of the UK’s hydrogen target of 10GW by 2030 - targeting energy-intensive, heavy industry.
The submission to the Government's Hydrogen Business Model (HBM) and Net Zero Hydrogen Fund (NZHF) could see bp receive some of the £240m grant funding available for such projects and designed to support upfront costs. Louise Kingham, bp’s UK head of country and senior vice president of Europe, said: "We aim to produce green hydrogen that can help decarbonise industries, heavy transport and even provide heat in homes. And we think HyGreen Teesside has the potential to transform energy use, the economy and skills in the local region.
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"The strong support we’re already seeing from customers reflects the need for us to deliver this for both Teesside and the wider UK. We’re not stopping there – our plans for mobility will also help drive the UK’s position in pioneering hydrogen and battery electric technology in transportation. Together, these can help deliver economic growth for the region and the home-grown hydrogen that the UK needs."
Coinciding with the bid submission, bp has also revealed three new agreements with industrial customers on Teesside, and one to supply around 2,000 homes and businesses in Redcar. Among the memorandums of understanding have been signed with Northern Gas Networks to supply its Hydrogen Village from 2025, fuel provider Ensus, lithium processor Tees Valley Lithium and its proposed Teesside plant and Wilton International owner Sembcorp.
bp already has agreements with CF Fertilisers and pigments maker Venator. Earlier this year Abu Dhabi energy company Masdar signalled it would buy a stake in the HyGreen project which could potentially lead to investment.
John Walker, chief executive of Tees Valley Lithium (TVL), added: "Tees Valley Lithium is delighted to be partnering with bp in this initiative, which will seek to further decarbonise TVL’s Lithium Hydroxide production at the Wilton International Chemicals Park, in Teesside, UK. TVL will source high value intermediate lithium products with a low embedded carbon footprint from around the world and will provide customers in the UK and Europe with an independent and sustainable supply of low-carbon battery-grade Lithium Hydroxide and Lithium carbonate.”
Grant Pearson, chairman of Ensus UK, said: "The potential for hydrogen to be used in our existing process to further reduce emissions, as well as in combination with current products offers enormous opportunities. We are delighted to be partnering with BP in this initiative which will significantly enhance our overall sustainability."
In addition to HyGreen Teesside, bp also plans to develop H2Teesside, a blue hydrogen production facility recently shortlisted for UK Government support as part of the BEIS CCUS cluster sequencing Phase-2 process.
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