Abu Dhabi National Oil Company (ADNOC) has signed agreements with UK energy major BP and Masdar, UAE’s renewable energy company, to develop green hydrogen and sustainable aviation fuel (SAF).
ADNOC will take a 25 percent stake in the design stage of BP’s blue hydrogen project, H2Teesside. This will be ADNOC’s first investment in the UK. BP and ADNOC will now advance the project, initially to the next stage of design, the pre-FEED stage. H2Teesside is expected to kickstart the UK’s hydrogen economy at scale by 2027 with the development of two 500MW hydrogen production units by 2030.
Masdar and BP signed a Memorandum of Understanding (MoU) to potentially collaborate on the green hydrogen project which will be powered by offshore wind, and is expected to produce 60MWe of hydrogen at start-up in 2025, increasing to up to 500MWe by 2030.
Together, these two projects could deliver 15 percent of the UK Government’s recently expanded 10GW target for hydrogen production in 2030.
The triparty collaboration will also explore the production of SAF in the UAE using solar-to-green hydrogen and municipal waste gasification, leveraging the capabilities of the Abu Dhabi Waste Management Centre (Tadweer), and Etihad Airways.
“ADNOC and Masdar’s deepened partnership with BP is a testament to the UAE and UK’s longstanding track record of bilateral partnership in sustainability as well as the UAE’s intent to play a leading role in the fast-growing clean hydrogen economy both domestically and internationally. In the UK, our role in Teesside will represent ADNOC’s first investment in the UK and help to accelerate innovation in the decarbonization of energy in industrial sectors. Similarly, the partners’ collaboration in Abu Dhabi is expected to further position the UAE as a leader in low-carbon energies and technology-driven industrial growth.”
These new agreements follow the formation of a strategic partnership for clean energy solutions in the UK and UAE between BP, ADNOC and Masdar in September 2021, including the intention to work together to develop low carbon hydrogen hubs, such as at Teesside. These initiatives are subject to relevant customary regulatory clearances.
Mr. Bernard Looney, BP’s chief executive said that “By joining forces with ADNOC and Masdar we are reinforcing the world-leading role that Teesside, and the UK more widely, can play in developing new supplies of energy, as well as new skills and supply chains. 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. ”
“Today’s announcements will strengthen the strategic partnership between Masdar, ADNOC and BP and continue to drive clean energy innovation for both the UAE and the UK. Masdar has been a long-standing investor in the UK’s renewable energy sector, and we will leverage our expertise in offshore wind and sustainable aviation fuels to support both nations’ energy transition while solidifying the UAE’s leadership position in the emerging green hydrogen economy,” said Mr. Mohamed Jameel Al Ramahi, Masdar CEO.