BP enters final negotiations for H2Teesside blue hydrogen plant

BP and the UK government finalize funding discussions for H2Teesside, a 1.2 GW blue hydrogen power plant. The project is crucial to the UK's industrial decarbonization and energy transition.

Share:

site pour H2Teesside

BP and the UK’s Department for Energy Security and Net Zero (DESNZ) are close to reaching an agreement to finance the H2Teesside project.
The 1.2 GW plant, designed to produce blue hydrogen, is based on the use of natural gas, combined with carbon capture and storage technologies.
The project is part of the government’s Carbon Capture and Storage Cluster (CCUS) program, aimed at reducing industrial emissions in the Teesside region, a strategic industrial hub.

Technical partnerships and research progress

BP has signed contracts with Costain and Technip Energies to carry out FEED studies for the project, with a target date of 2025.
Costain will focus on the design of the hydrogen distribution infrastructure, while Technip Energies will take charge of the hydrogen production and carbon capture facilities.
The cost of producing blue hydrogen by autotermic reforming, including capital expenditure and carbon capture, is currently estimated at 2.38 GBP/kg by S&P Global Commodity Insights.

Funding challenges and decision timetable

Final investment decisions and funding allocations for successful CCUS Track 1 projects are expected in September, although delays are possible due to recent political changes in the UK.
The planning approval process for H2Teesside is underway, with a decision expected by 2025.
Other projects, such as EET Hydrogen’s 350 MW plant at Stanlow, have already received approval and expect an investment decision in 2024.
Equinor’s Saltend H2H project, on the other hand, has been postponed to 2027 after not being selected for Track 1.

Economic stakes for the region

The development of the H2Teesside project is expected to have a significant economic impact on the Teesside region, with the creation of numerous direct and indirect jobs.
The project is part of the UK’s wider strategy to maintain its industrial competitiveness while meeting its commitments to reduce carbon emissions.
The collaboration with partners such as Costain and Technip Energies strengthens the technical foundation of the project, which is essential to ensure the economic and industrial viability of large-scale blue hydrogen production.

Envision announces the official commissioning of the world's largest green hydrogen and ammonia plant in China, powered by an autonomous renewable energy system and entirely AI-driven, with exports planned from late 2025.
Sumitomo Corporation announces a strategic investment in Independence Hydrogen aimed at developing new decentralized hydrogen production and distribution projects in the United States, targeting industrial, logistics and critical infrastructure sectors.
80 Mile announces that it has increased its stake in Hydrogen Valley to 49% and signed a memorandum of understanding with Tecnoparco for the supply of 40,000 tonnes of biofuel per year, aiming to reduce palm oil dependency.
The Hive Coega project, South Africa’s most ambitious green ammonia initiative, enters its operational phase with the release of tenders for essential infrastructure, marking a major step forward for the country in renewable energy production.
The Belfort commercial court has approved the sale of McPhy to John Cockerill Hydrogen, a €600,000 transaction involving majority retention of staff and an industrial project partially funded by European subsidies.
The City of Fresno becomes the latest member of First Public Hydrogen, the first US public authority dedicated to hydrogen development, thus strengthening its energy infrastructure and municipal bus fleet.
The official confirmation in June 2025 by the French government regarding the detection of significant natural hydrogen reserves in Lorraine, the Pyrenees, and Aquitaine could represent a major strategic turning point for national and European energy sovereignty. However, the technical, economic, and environmental challenges associated with its exploitation might slow its large-scale implementation.
Stanwell announces the end of its participation in the Central Queensland Hydrogen Project, a major international hydrogen production initiative, raising questions about the sector's outlook in the region.
Lhyfe becomes the first French producer to obtain European RFNBO certification, delivering the first batches of certified hydrogen and opening access to new support mechanisms for the industrial sector.
Tree Energy Solutions and CPC Finland will produce 125,000 tonnes annually of e-NG at the Finnish port of Rauma, targeting European and international markets with a significant investment.
The European Commission grants €3.5mn to support preparatory work for a Franco-German cross-border network aimed at transporting hydrogen between the Grand Est region and Baden-Württemberg starting in 2029.
French company McPhy Energy awaits a court decision regarding offers submitted during its judicial reorganization, paving the way for probable liquidation and potential delisting of its shares.
The majority-Indigenous-owned Canadian manufacturer HyVera Distributed Energy is introducing an eCat pellet that instantly produces ultra-pure green hydrogen without external electricity and is counting on two pilot plants to simplify industrial supply.
Underground hydrogen storage, essential to support its growth, continues to face significantly higher costs than natural gas storage, along with major technical challenges hindering its competitiveness against conventional energies.
Singapore-based hydrogen specialist Hydrexia seals a protocol with Indonesian gas giant Samator to deploy purification, transport and storage of hydrogen, betting on rapidly growing local demand and export outlets to the Asia-Pacific region.
Cadiz Inc. signs a memorandum of understanding with British company Hoku Energy for a large-scale energy project including green hydrogen, solar power, and digital infrastructure in the Californian desert, projecting annual revenues of up to $10mn.
BP indefinitely halts its blue hydrogen project at the Whiting refinery in Indiana, raising questions about the future of federal funding and the impact on regional plans for a decarbonized hydrogen sector in the United States.
The Polish energy group ORLEN receives a non-repayable grant of €382 million from the National Recovery Plan to finance its renewable and low-emission hydrogen production initiatives.
Georgia Power and Mitsubishi Power announce successful completion of an unprecedented test incorporating 50% hydrogen into an advanced gas turbine, reducing CO2 emissions by 22% compared to natural gas alone.
Neoenergia has begun construction of one of Brazil's first green hydrogen plants, aimed at supplying heavy and light vehicles, with an investment exceeding 30 million Brazilian reais ($5.99mn).