A front-end engineering design (FEED) contract has been signed by bp, after their agreement over a statement of principles was finalised with the UK Government. This agreement has been created around bp’s proposed H2 Teesside project.

To make this possible, the first step in the process will be for Technip Energies to deliver the FEED for the proposed blue hydrogen production facility, along with integrated carbon capture. Along with this, the finalised contract has mentioned that establishing the EPC execution methodology will be included and this will involve creating a robust schedule and project cost. This is all due to be completed by 2025.

Within the East Coast Cluster, the plan for the integrated blue hydrogen production facility and hydrogen distribution pipeline, will be to integrate the project with other decarbonisation projects that are located directly within the region. This facility has the potential to capture and send for storage over two million tonnes of CO2 on an annual basis and this makes up the equivalent of capturing emissions from the heating of one million UK households.

One of the reasons why this project is so large and significant, is because hydrogen is one of bp’s five energy transition growth engines. The business has stated that it ‘believes it will be a key enabler to decarbonize hard-to-abate industry.’ Furthermore, bp has made it clear that the company is ‘focused on selecting and delivering quality opportunities, by prioritising projects based on value.’

Finalising and agreeing on the statements of principle with DESNZ, means that H2 Teesside is now able to enter the final stage of negotiations, which the company is hoping will lead them to a low carbon hydrogen agreement. The purpose behind this agreement, is to allow a project which will support the production of low carbon hydrogen on Teesside to take place. The benefits of creating the project which bp is intending for H2Teesside, include the ability to support economic development and regeneration in Teesside. Plus it will also help to create jobs in the construction and operation phases, whilst simultaneously supporting local education, skills development and finally, generating a highly skilled UK-based hydrogen and CCS supply chain.

A major step within this construction phase will include Costain, the infrastructure solutions company, which has been selected to design the pipeline infrastructure. So far, the plan consists of the 31km pipeline distribution network delivering hydrogen from the blue hydrogen production site to industry. It has been anticipated that the FEED which Costain is working on will be completed in 2025 as well.

Overall, the aim for this project is to reach 1.2 GW of hydrogen production, which altogether equates to over 10% of the UK’s 2030 hydrogen production target. Another aim is for the project to be able to supply a diverse range of customers, including those that are already established in the region, plus any new businesses which show an interest in in low carbon hydrogen production at scale.

VP for hydrogen and CCUS at bp, UK, Andy Lane, commented, “These agreements mark further critical milestones for H2Teesside as the project continues to move towards EPC contracts and then construction. The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low carbon hydrogen economy.”

SVP Gas and Low Carbon Energies of Technip Energies, Mario Tommaselli, added, “Being selected for bp’s H2Teesside project highlights Technip Energies' proven experience in working as a technology integrator on large-scale projects. By leveraging our extensive expertise in hydrogen and carbon capture technologies, we are well-positioned to deliver innovative and scalable solutions that align with the UK’s ambitious decarbonization targets.”

Managing Director of natural resources at Costain, Sam White, mentioned, “This exciting project is a step change for UK decarbonisation. Our in-house engineering expertise will design a world-leading network that will safely transport hydrogen to provide industrial users with an alternative to natural gas, a key step in the development of the hydrogen economy. In addition to the environmental benefits, this is a project that will be transformative for Teesside and its people, creating jobs and developing skills throughout the region. In transportation, water, and energy, we’re committed to delivering critical infrastructure that improves lives and prosperity across the North-East of England.”