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Aberdeen City Council and bp to establish hydrogen hub

Energy giant bp and Aberdeen City Council have agreed to explore a new joint venture that may see the building of a new facility for producing, storing and distributing green hydrogen.

The two organisations have together committed £3 million for the preliminary design work for the venture, which will operate under the name “bp Aberdeen Hydrogen Energy Limited”. The building of phase one of the facility is expected to receive a final investment decision early next year.

As part of its net-zero ambitions, bp, which owns the Castrol lubricant brand, is expecting to collaborate with 10 to 15 cities around the world by 2030 to help them achieve their own decarbonisation goals. In a statement, the Senior Vice President for Europe and UK Head of Country at bp, Louise Kingham, said the firm was investing in all growth areas of the UK’s energy transition, adding:

“In fact, we have committed to spend £2 in the UK for every £1 generated here out to the middle of this decade. With these new business opportunities underpinned by our long-standing position in North Sea oil and gas, we are showing what an integrated energy company can do.”

Aberdeen City Council, meanwhile, aims to support inclusive growth and transform Aberdeen, which has traditionally been a hub for the North Sea oil and gas industry, into a climate-positive city. Phase one of the venture aims to be producing more than 800 kilograms of green hydrogen daily from 2024, enough to fuel a modest fleet of heavy vehicles, such as 25 buses.

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