BP Selects Costain for Innovative Teesside Hydrogen Pipeline Development

Costain has been awarded a substantial multi-million-pound front-end engineering and design (FEED) contract by bp to develop a new hydrogen pipeline network in the Teesside region. Costain’s multi-disciplinary in-house engineering team will deliver the Front-End Engineering Design (FEED) for a new 31km onshore pipeline distribution network.

This network will transport purified and dehydrated hydrogen from bp’s new hydrogen production facility to various industrial end users. Costain is expected to complete the FEED project in 2025, paving the way for the construction phase and supporting bp's hydrogen distribution goals.

Operated by bp as a key component of the East Coast Cluster, H2Teesside (H2T) is set to become one of the largest blue hydrogen production facilities in the UK, with an annual production capacity of approximately 160,000 tonnes of low carbon hydrogen. This substantial output will replace natural gas consumption among industrial end users, significantly contributing to the establishment of a hydrogen economy and promoting regional decarbonisation. H2T's blue hydrogen will play a crucial role in reducing carbon emissions, supporting the UK's transition to cleaner energy, and exemplifying bp's commitment to innovative and sustainable energy solutions.

Additionally, bp has appointed Technip Energies to deliver the Front-End Engineering Design (FEED) for the H2Teesside hydrogen production facility. This scope of work includes developing the execution strategy, establishing a comprehensive project schedule, and determining the project costs. The FEED is anticipated to be completed by 2025.

Sam White, Managing Director of Natural Resources at Costain, expressed enthusiasm about the new project, calling it a transformative step for the UK's decarbonisation efforts. He emphasized that Costain’s in-house engineering team will leverage their expertise to design a pioneering hydrogen network. This network is intended to safely transport hydrogen, providing industrial users with a viable alternative to natural gas. White underlined the project's significance in advancing the hydrogen economy and supporting the transition to sustainable energy. He noted that this initiative is crucial for achieving the UK's decarbonisation targets and developing a robust and environmentally friendly industrial infrastructure.

Andy Lane, Vice President for Hydrogen and CCUS at bp in the UK, highlighted the importance of the recent agreements for the H2Teesside project. He explained that these milestones are crucial as the project progresses towards Engineering, Procurement, and Construction (EPC) contracts and eventually construction. Lane emphasized that H2Teesside could significantly contribute to decarbonising industry in the Teesside region, positioning it as a leading hydrogen hub. This initiative aims to kickstart the UK's low carbon hydrogen economy, supporting broader efforts to transition to sustainable energy and reduce carbon emissions across industrial sectors.

Earlier this year, Costain successfully completed the Front-End Engineering Design (FEED) for the onshore CO2 pipeline and associated utilities. Recently, bp selected Costain to advance the project to the next stage, overseeing and managing the engineering, procurement, and construction of the CO2 system. Detailed engineering design and preparatory works are scheduled to commence later this year, contingent upon final investment decisions.