bp, ADNOC and Masdar have signed three agreements with the potential to lead to billions of dollars of investment into clean and low carbon energy, creating potentially thousands of energy jobs
The first agreement would see the companies collaborate to initially develop two gigawatts of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses. Access to clean hydrogen – a critical fuel in the decarbonisation of hard-to-abate industries – can reduce emissions, enable new, low carbon products, and unlock future fuels. Today’s announcement could enable a significant contribution towards the UK Government’s target to develop five gigawatts of hydrogen production by 2030.
It could also lead to the first international investment in the low carbon hydrogen facility in Teesside (H2Teesside), which aims to produce one gigawatt of blue hydrogen starting in 2027. H2Teesside would capture and store up to two million tonnes of carbon dioxide (CO2), a year through the Northern Endurance Partnership (NEP). The investment is expected to support thousands of jobs and stimulate economic growth. It is also expected to diversify and bolster local supply chains in both the UK and UAE.
As part of the first agreement, bp, ADNOC and Masdar also intend to pioneer decarbonised air corridors between the UK and UAE – one of the busiest global air travel routes – further strengthening the commercial and cultural ties between the two countries in a sustainable way.
Bernard Looney, bp’s CEO, said, “The UK and UAE governments have bold plans for decarbonisation. The UK is our home and we have worked in the UAE for nearly a century. By partnering with the visionary leaders of ADNOC and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs – and at the same time revitalise local economies and create the jobs of the future.”
UK Prime Minister Boris Johnson added, “This is a fantastic investment in the industries of the future, creating high value jobs across the UK as we build back better and greener. It is clear indication that businesses in the energy sector are taking the transition to cleaner solutions seriously, and a major boost to the UK’s own ambitious net zero goals.”
Generating economic growth
HE Dr Sultan Ahmed Al Jaber, minister of industry and advanced technology, managing director and Group CEO, ADNOC and chairman, Masda, commented, “The UK and UAE have enjoyed decades of strong economic ties and the agreements signed today between ADNOC, Masdar and bp will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives.”
bp and Masdar have also agreed to explore opportunities to develop, build and operate sustainable energy and mobility solutions for cities – in the UK, UAE and beyond – on the road to net zero. The two companies will initially focus on the application of energy efficiency and storage, cleaner fuels and distributed renewables generation.
Finally, bp and ADNOC plan to deepen their collaboration to decarbonise oil and gas operations in Abu Dhabi, including the potential development of carbon capture use and storage (CCUS) hubs. The two companies would also harness advanced methane emission detection and reduction technologies and create Smart Decision Centres in the UAE, where digital and AI technology would then be used to accelerate operational efficiency.
