During a recent meeting with Martin Hughes, Senior Project Manager at bp, one could sense the palpable excitement surrounding the company’s latest milestone in the H2Teesside project. This significant achievement involves an agreement on the statement of principles with the UK Government’s Department for Energy Security and Net Zero (DESNZ), marking a critical step towards finalising a low-carbon hydrogen agreement. Our conversation provided an in-depth look at the intricacies of this transformative project, the partnerships involved, and its broader implications for the UK’s decarbonisation strategy.
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“Martin, what does this agreement with DESNZ signify for bp and the H2Teesside project?” I inquired, eager for his perspective.
Martin’s enthusiasm was evident as he responded, “Agreeing on the statement of principles with DESNZ is a pivotal moment for us. It allows us to enter the final stage of negotiations for a formal low-carbon hydrogen agreement. This is a significant leap towards establishing H2Teesside as a cornerstone in the UK’s hydrogen economy. The statement of principles goes beyond mere formality; it sets the groundwork for detailed engineering and design work essential to the project’s success. It ensures all parties are aligned on key objectives and methodologies for the next phases.”
As Martin elaborated, it became apparent that H2Teesside is more than just a hydrogen production endeavour. It represents a comprehensive effort to integrate cutting-edge technologies and infrastructure, involving several strategic partners. Technip Energies, for instance, has been tasked with delivering the front-end engineering design (FEED) for the blue hydrogen production facility. This includes establishing the EPC execution methodology, a robust schedule, and accurate project cost estimates, all expected to be finalised by 2025.
“Technip Energies brings invaluable experience,” Martin noted. “Their expertise in hydrogen and carbon capture technologies is crucial. Our goal is to create a facility capable of producing hydrogen at scale while capturing and storing over two million tonnes of CO₂ annually. This amount is equivalent to the emissions from heating one million UK households, making it a transformative step for decarbonising Teesside’s industry.”
Our conversation shifted to the project’s essential pipeline infrastructure. Costain, an infrastructure solutions company, has been selected to design the 31km pipeline distribution network that will deliver hydrogen from the production site to various industrial users.
“Costain’s role is paramount,” Martin emphasised. “Their in-house engineering expertise ensures we have a world-leading network for the safe transport of hydrogen. This pipeline is crucial for developing the hydrogen economy, providing industrial users with a viable alternative to natural gas. The benefits extend beyond environmental gains; they include job creation, skills development, and economic regeneration for Teesside.”
The broader context of the UK’s decarbonisation efforts was another focal point of our discussion. Martin was keen to highlight the project’s integration with other regional initiatives, such as the East Coast Cluster.
“The East Coast Cluster is integral to our strategy,” he explained. “By integrating our hydrogen production facility and distribution pipeline with other decarbonisation projects, we can create a synergistic effect. This cluster approach maximises our impact, establishing a hub of low-carbon activity that can serve as a model for other regions. Our target is to produce 1.2 GW of hydrogen, over 10% of the UK’s 2030 hydrogen production goal. It’s ambitious, but we’re confident in our ability to achieve it.”
As our conversation drew to a close, I asked Martin about bp’s long-term vision and hydrogen’s role in their energy transition strategy.
“Hydrogen is one of our five energy transition growth engines,” he said. “We view it as a key enabler for decarbonising hard-to-abate industries. Our strategy focuses on selecting and delivering quality opportunities that offer real value. The H2Teesside project exemplifies this approach. It’s about meeting immediate targets and laying the groundwork for a sustainable, low-carbon future.”
Reflecting on our discussion, it was evident that the H2Teesside project represents more than just a milestone for bp. It is a testament to the power of collaboration, innovation, and a steadfast commitment to decarbonisation. As the project progresses towards final negotiations and eventual construction, it stands as a beacon of progress for the UK’s hydrogen economy and a source of pride for the Teesside community.
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