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UAE companies to collaborate with BP on UK projects

Masdar of Abu Dhabi and the Abu Dhabi National Oil Company (ADNOC) have extended their existing agreements with BP to include investment in two major hydrogen projects.

BP, which makes the Castrol lubricant range, has proposed two hydrogen projects in the Teesside area – the HyGreen Teesside green hydrogen facility and the H2Teesside project for blue hydrogen production.

Masdar, which deals with renewable energy, has agreed in a memorandum of understanding (MoU) to buy a stake in HyGreen Teeside, which aims to produce 60 MWe of green hydrogen in 2025 before scaling capacity up to 500 MWe by the end of this decade. ADNOC, meanwhile, will take on a 25% stake in H2Teesside’s design stage, which will be its first UK investment. H2Teesside’s two production units are expected to be producing 500 MWe of blue hydrogen in 2027.

Bernard Looney, the CEO of BP, said the collaboration would strengthen the prominent role that the UK and specifically Teesside would play in establishing the new supply chains and skills needed to develop new energy sources, adding:

“We’re backing Britain and the resources, capability, and net-zero ambition here in the UK make it ideal for the development of low-carbon hydrogen, and together we can help deliver a significant contribution to the UK’s newly increased hydrogen ambition.”

The collaboration will also include projects in the UAE, with BP working with ADNOC to investigate the feasibility of a blue hydrogen project there. The three companies will also work with other local companies to explore using waste and hydrogen to make sustainable aviation fuel.

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