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BP seeks government backing for low-carbon projects

Energy supermajor BP says it has made an application for government backing for two low-carbon projects based in Teesside as part of the East Coast Cluster of the Northern Endurance Partnership, which was approved by the UK Government last October.

If the applications are successful, the H2Teesside hydrogen and Net Zero Teesside Power (NZT Power) projects will qualify for support from central government. The former will establish a production site for blue hydrogen, with this starting operations by 2027 and becoming capable of making a gigawatt of hydrogen from natural gas by the end of the decade.

BP, which also makes lubricant products under the Castrol brand, will jointly develop NZT Power with Equinor. The project intends to build the country’s first commercially viable power station that is fired by gas and has carbon capture capability. This should produce enough power for over a million homes, while potentially capturing as much as two million tonnes of carbon dioxide emissions each year.

Ben Houchen, the Mayor of Tees Valley, said about the projects:

“These two ground-breaking projects are putting our scientists and engineers at the forefront of developing the key technologies that will be needed the world over if we are to reduce emissions – making our region a global centre of excellence for hydrogen and carbon capture technology.”

The Senior Vice President of Europe and Head of Country at BP, Louise Kingham, expressed the company’s pride at supporting Teesside. She said the bids marked a landmark moment in developing Teesside as a hub for clean energy.

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