BP plans UK hydrogen hub

BP plans to set up a large-scale green hydrogen production plant in northeast England to facilitate the UK’s lessening of dependence on fossil fuels.

The project, dubbed HyGreen Teesside, aims to produce 60 MWe (megawatt electrical input) of green hydrogen, which is derived from renewable sources, by 2025, BP said.

Along with its previously announced blue hydrogen project, which is produced from natural gas, the two Teesside plants have the potential to deliver 30% of Britain’s ‎‎2030 target for hydrogen production, BP claimed.

Governments and energy companies are betting on clean hydrogen playing a leading role in efforts to lower greenhouse gas emissions, but its future uses and costs have been called into question.

The British government is targeting 5 GW (gigawatts) of low-carbon hydrogen production by 2030 to replace natural gas in powering around three million homes, as well as industry and transport.

The HyGreen Teesside project, to be developed in multiple stages, could deliver up to 500Mwe of hydrogen production ‎by 2030, the London-listed company said.

“This is excellent news following the recent COP26 summit and I look forward to supporting industry ‎to develop new technologies as we build a cleaner transport system and work towards a net-zero ‎future,” UK Transport Secretary Grant Shapps said.‎

BP is targeting to start production by 2025 and said the final investment decision on the ‎project is expected in 2023.

A global coalition of industrial companies modified a target for emissions-cutting green hydrogen at the COP26 climate talks in Glasgow earlier this month.

The insurance market is also carefully examining the emerging risks and possibilities associated with hydrogen.

According to the Lloyd’s Futureset Climate Action Report on Greener Energy, hydrogen is a fuel that produces no direct greenhouse gas emissions or other pollutants when combusted. Its lightness and energy density, combined with its ability to act as an energy carrier that can be used to store, move and deliver energy produced from other sources, makes it a key enabler in accelerating the decarbonisation of a range of sectors, including metals and mining, chemicals, domestic and international freight, heavy transportation, cement and agriculture.

In addition, as a liquid fuel, hydrogen has key advantages in storage and transportation, Lloyd’s claims.

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