BP weighs major cut or cancellation of flagship UK blue hydrogen project: reports
UK oil and gas major BP is reportedly weighing a drastic scale-back or full cancellation of its flagship 1.2GW H2Teesside blue hydrogen project.
The project, which is planned to produce hydrogen from natural gas and carbon capture, was first announced in 2021 and is positioned to deliver 10% of the UK’s 2030 hydrogen production target.
However, according to The Telegraph, insiders have suggested BP is now considering a 75% reduction in scope or a full withdrawal unless more government support is provided.
The report suggests that BP is struggling to find enough offtake for the plant. Chemical giant Sabic had been tipped as a major potential offtaker via its currently offline Teesside olefins plant. But the firm recently extended a pause on plans to restart the plant using natural gas.
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