bp, Aberdeen City Council to develop city hydrogen hub

Both parts will operate the multiphase joint venture under the name bp Aberdeen Hydrogen Energy Limited, which is expected to start building in 2023.

bp and the Aberdeen City Council will form a joint venture that will deliver a scalable green hydrogen production, storage and distribution facility in the city powered by renewable energy. Both parts will operate the joint venture under the name bp Aberdeen Hydrogen Energy Limited and have commited £3 million for initial design work with a final investment decision for the phase one facility build expected in early 2023.

“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. 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 UK head of country and senior vice president for Europe.

The Aberdeen Hydrogen Hub is to be developed in three phases in response to growing demands for hydrogen. Phase one, which involves delivery of a green hydrogen production and transport refueling facility powered by a solar farm, is targeting first production from 2024, delivering over 800 kilograms of green hydrogen per day – enough to fuel 25 buses and a similar number of other fleet vehicles.

“We’ve long held the view that the energy and mobility assets that cities control can drive change, so we’re delighted to be announcing this public-private joint venture. But we also believe that working with and within cities is key to achieving decarbonization at scale. By working with key fleets in and around the city we’re aiming to stimulate demand for hydrogen and help the people and businesses of Aberdeen secure value through the energy transition,” added Oliver Taylor, incoming chief executive for bp Aberdeen Hydrogen Energy Limited.

The Aberdeen Hydrogen Hub programme 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. bp expects to partner with 10-15 cities globally by 2030 to provide integrated ‎and decarbonized energy solutions at scale to help them achieve their goals of net zero emissions.