Significant Agreement Sealed as Energy Titan's Teesside Ventures Progress

bp's extensive investment plans on Teesside have achieved a significant milestone with a crucial advancement in one of its pivotal components.

A license agreement has been formalized between bp and BASF, a leading global chemical company, facilitating the utilization of BASF's OASE white technology for carbon dioxide capture at bp's proposed blue hydrogen facility, H2Teesside.

BASF has been actively supporting H2Teesside since Autumn 2023, and their engineering delivery package is already well underway. H2Teesside aims to emerge as one of the United Kingdom's largest blue hydrogen production facilities, with a target of 1.2GW hydrogen production capacity by 2030. This ambitious goal represents over 10% of the UK Government's hydrogen target of 10GW by the same year. Blue hydrogen, derived from natural gas, involves the capture of generated carbon dioxide for storage.

Within the realm of bp's Teesside projects, H2Teesside is joined by two other remarkable initiatives: HyGreen, which focuses on producing green hydrogen through renewable sources like solar or wind power, and the flagship Net Zero Teesside Power (NZT Power), a pioneering gas-fired power station featuring carbon capture technology.

BASF's OASE white technology boasts a proven track record in numerous ammonia, hydrogen, and carbon monoxide plants globally. Its integration into the blue hydrogen production process is expected to enhance energy efficiency while achieving an impressive CO2 capture rate of up to 99.99%. Carbon capture activities at H2Teesside have the potential to capture and store approximately two million tonnes of CO2 annually via the bp-led Northern Endurance partnership. This partnership is responsible for developing the onshore and offshore infrastructure necessary for carbon capture from various emitters across Teesside and the Humber region.

The agreement between bp and BASF represents another pivotal stride for H2Teesside as the project gains momentum and progresses towards commercial operations, slated for 2028.

Commenting on this collaboration, a spokesperson from BASF expressed pride in contributing to this significant project aimed at reducing CO2 emissions. They emphasized that BASF's technology stands as a reliable and established solution for carbon capture, characterized by high energy efficiency. They highlighted BASF's commitment to supporting customers in achieving sustainability objectives.

In March 2023, H2Teesside was selected as one of three Track-1 Capture Projects for negotiations regarding UK Government funding support from the Department for Energy Security & Net Zero, focusing on the East Coast Cluster. Additionally, in October, bp announced its licensing and engineering agreement with Johnson Matthey for the LCH blue hydrogen technology, a crucial element enabling hydrogen production within the process.

bp has outlined its intention to invest up to £18 billion in the UK's energy system by the end of 2030. As one of the leading oil and gas producers in the UK, bp remains committed to investing in North Sea oil and gas operations while actively working to reduce operational emissions.

BASF, with over 111,000 employees spanning various sectors and operating across nearly every country globally, reported sales of €87.3 billion in 2022. Its diverse portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions.