BP picks Aberdeen for green hydrogen hub
BP revealed March 11 it will spend at least £3mn ($4mn) to invest in a green hydrogen production, storage and distribution facility in Aberdeen.
The UK oil major has entered a joint venture with Aberdeen city council to develop the Aberdeen hydrogen hub in three phases. An initial £3mn commitment will support early design work, with a final investment decision on the project's initial phase due to be taken early next year.
Development will start with the delivery of a solar-powered facility for producing green hydrogen and loading it into transport vehicles. BP says phase one could launch as early as 2024 and will deliver over 800 kilograms of green hydrogen daily, which is enough to fuel 25 buses.
The company is investing in key growth areas for the energy transition in the UK, including at a proposed carbon capture plant in north England and an expansion of the UK electric vehicle charging network. By 2030, it aims to capture 10% of the "low carbon hydrogen market in key geographies", partnering with 10 to 15 cities to implement decarbonised energy solutions.
"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," said Louise Kingham CBE, BP's head of country and senior vice president for Europe.
Future phases could scale up green hydrogen to meet demand for heating energy grids as well as rail, freight and marine vessels, and even overseas exports. BP says the expansion would be powered by local renewable energy sources, including offshore wind farms from Scotland's forthcoming licensing round.
The benefits are expected to spread into the local economy, with the city council estimating that the hydrogen industry could need up to 700 skilled workers by 2030.
Jenny Laing, leader of the city council, said the BP agreement marked a "milestone" for hydrogen in the city. "We are now seeing the benefits of having our 2015 Hydrogen Plan in place that provided a clear statement on the scale of our ambition to deploy hydrogen power in Aberdeen."