ADNOC, bp, Masdar ink deal for clean hydrogen development

Project is expected to start operations in 2027

British energy giant bp, the Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi future energy company Masdar will partner to develop clean hydrogen and technology hubs, the companies announced in a joint statement on Tuesday.

In its first investment in the UK, ADNOC will take a 25% stake in the design stage of bp’s blue hydrogen project, H2Teesside, which is expected to kickstart the UK’s hydrogen economy at scale with the development of two 500-megawatt hydrogen production units by 2030.

The project is targeting the start of operations in 2027.

The Abu Dhabi-based renewable energy company, Masdar, also signed a memorandum of understanding to acquire a stake in bp’s proposed green hydrogen project, HyGreen Teesside. This project plans to produce 60 MWe (megawatt electrical input) of hydrogen at start-up in 2025,increasing to 500 MWe by 2030.

Together, these two projects could deliver 15% of the UK government’s recently expanded 10 GW target for hydrogen production in 2030, according to the statement.

bp will also join ADNOC to evaluate a new blue hydrogen project in Abu Dhabi, conducting a joint feasibility study for a world-scale, low-carbon hydrogen project in the country.

“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,” bp’s Chief Executive Bernard Looney was quoted as saying in the statement.

The decision came after bp, ADNOC and Masdar in September 2021 agreed on a strategic partnership for clean energy solutions in the UK and UAE, including the intention to work together to develop low carbon hydrogen hubs, such as at Teesside.


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