Feb 21

BP to Build UK’s Largest Blue Hydrogen Plant

Stephen Bierman
Mar 18, 2021

Image: Morning Brew via Unsplash

BP has unveiled plans to build the UK’s largest blue hydrogen plant, paired with carbon capture, as the oil and gas producer presses on with a strategy to decrease carbon emissions.

The plant site is slated for Teeside, home to five of the nation’s top 25 emitters, where adjacent industries account for over 5 percent of the UK’s industrial emissions. Plans envision production of 1 gigawatt (GW) by 2030, with capture of up to 2 million tonnes of carbon or the equivalent of heating 1 million households.

One of the world’s largest petroleum companies, BP has made a shift in strategy to become carbon neutral amid global efforts to combat global warming. The UK government seeks to be the first industrialized nation to become carbon neutral by 2050, and for its corporations to capture and lead markets in technology and processing for hydrogen. The UK has targeted 5GW of hydrogen production by 2030.

Hydrogen itself is a clean burning fuel which is broadly seen as a possible solution to curbing emissions. Production of hydrogen can be accomplished in varying ways, with different sized carbon footprints. So-called blue hydrogen uses natural gas in generating the energy and molecules for manufacture, thus requiring accompanied carbon capture.

BP expects to make a final investment decision in 2024, with production of 500 MW to begin in 2027 or earlier.

Stephen Bierman

Stephen Bierman is a finance and energy reporter with over 15 years of experience, including at Bloomberg News and Energy Intelligence.

Tweets at: @StephenBierman1

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