UAE-based renewable energy company Masdar will buy an unspecified stake in BP Plc’s (LON:BP) HyGreen Teesside project in the North East of England that will create a complex for the production of green hydrogen of up to 500 MWe.
The oil and gas major and Masdar have signed a memorandum of understanding (MoU) regarding the proposed transaction, BP said on Tuesday. Specific details about the arrangement and financial terms were not available.
Planned to be installed in Teesside, the HyGreen plant will kick off operations with some 60 MWe of hydrogen production capacity in 2025, while it is planned to reach up to 500 MWe by 2030. The project was unveiled by BP at the end of last year along with the H2Teesside blue hydrogen initiative at the same location.
According to BP, the two projects, with a combined capacity of 1.5 GW, could provide 15% of the UK government’s target of 10 GW of hydrogen production by 2030.
Meanwhile, Abu Dhabi National Oil Company, or ADNOC, has agreed to acquire a 25% stake in the design stage of the blue hydrogen scheme, BP said. The project will move to the preliminary front end engineering and design (pre-FEED) stage, with the complex expected to be brought live in 2027. The entire capacity of its two 500-MW production units will be fully operational by 2030.
The latest agreements come on the heels of an earlier partnership between BP, Masdar and ADNOC for providing clean energy solutions in the UK and the UAE.
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