BP has signed an agreement with Aberdeen City Council in order to develop a green hydrogen hub. The parties have committed £3 million ($3.9m) for the initial design work.
The two parties formed a joint venture partnership with the aim of delivering a green hydrogen production, storage, and distribution facility in the city powered by renewable energy.
The joint venture will be named BP Aberdeen Hydrogen Energy Limited. A final investment decision for the first phase facility will take place in early 2023. The development of the Aberdeen Hydrogen Hub will go through three phases, in response to the growing demands for hydrogen.
Phase one, which involves delivery of a green hydrogen production and transport refuelling facility powered by a solar farm, is targeting first production from 2024, delivering over 800 kilograms of green hydrogen per day
The next phases could see production scaled up to supply larger volumes of green H2 for rail, freight, and marine. It could also supply H2 for heat and potentially export. The increased availability of local renewable energy sources would enable this expansion. These include developments that will come from the ScotWind offshore wind leasing round.
This program will support Aberdeen City Council’s ambitions to create a climate positive city and build inclusive growth through supporting hydrogen supply chain development, skills and training, and wider community benefits.
Today is a milestone in delivery of our hydrogen program. 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
…said Aberdeen City Council leader councilor Jenny Laing and continued “That next phase will see scale production of green hydrogen in response to growing demand and maintains Aberdeen’s place at the forefront of the UK and Scotland’s transition to renewable energy.”
BP is investing across all the energy transition growth areas in the UK. In fact, we have committed to spend £2 in the UK for every £1 generated here out to the middle of this decade
…mentioned Louise Kingham CBE, BP’s UK head of the country.
This joint venture with BP provides the city with the expertise to grow a supply chain, develop new skills and jobs and I believe this model will be an exemplar for how councils implement plans to reach net-zero
added Aberdeen City Council’s convenor Ryan Houghton.