Abu Dhabi National Oil Company (ADNOC), the United Arab Emirates’ largest energy company, and Masdar of Abu Dhabi have agreed to join bp’s blue and green hydrogen developments in the north-east of England, according to a joint statement.
ADNOC will make its first investment in the United Kingdom with a 25% stake in the design stage of bp’s blue hydrogen project, H2Teesside. The project, slated for a 2027 start, will bring scale to the UK’s hydrogen economy with the development of two 500MW hydrogen production units by 2030. Blue hydrogen denotes hydrogen produced using natural gas.
Masdar, the Abu Dhabi renewable energy company, plans to take a stake in bp’s proposed green hydrogen project, HyGreen Teesside. This project is planned to produce 60MWe (megawatt electrical input) of hydrogen at start-up in 2025, increasing to up to 500MWe by 2030. Green hydrogen is made from renewable energy.
“In the UK, our role in Teesside will represent ADNOC’s first investment into the UK and help to accelerate innovation in decarbonization of energy in industrial sectors,” according to H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman.
Together, these two projects could deliver 15% of the UK government’s recently expanded 10GW target for hydrogen production in 2030. Energy producers globally are seeking production of new fuels like clean burning hydrogen and hydrogen-based products that can cut carbon emissions and fight climate change.
“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,” according to Bernard Looney, bp’s chief executive. “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. “
The partnership may also run both ways. bp and ADNOC will evaluate a new blue hydrogen project in Abu Dhabi. 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.
The partnership deepens Masdar’s investment in UK clean energy.
“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,” according to Mohamed Jameel Al Ramahi, Masdar’s chief executive.
