Pulled hydrogen plant 'discouraging' for net zero

Jason Arunn MurugesuNorth East and Cumbria
News imageBP An illustrative image showing how the hydrogen facility could look, including industrial towers and metal piping.BP
H2Teesside would have been one of the largest blue hydrogen plants in the UK, BP said

BP's decision to pull out of building a hydrogen plant has been described as "discouraging" by scientists working on decarbonisation.

Last week, the energy giant backed out of its plans at Teesworks in Redcar following a row with landowners over whether the site would be better suited to housing a data centre.

Prof Simone Abraham, Durham Energy Institute executive director, said the decision raised "a lot of questions about the commitment to hydrogen development among industry and government".

The Department for Energy Security and Net Zero (DESNZ) said the government had backed the industry with £500m. BP has been approached for comment.

Prof Abraham said the move was "discouraging" but that she still believed hydrogen would play an important role in future energy systems.

BP backed out of the HSTeesside project ahead of a government decision on the plans, citing a "material change in circumstances" to the land it had been due to be built on.

At the time, a spokesperson said: "We continue to move forward with other projects on Teesside, including our investments in Net Zero Teesside Power and the Northern Endurance Partnership, and remain an active partner in the region."

Tees Valley Mayor Ben Houchen said he would continue to work with the BP on that project, which aims to be "the world's first gas-fired power station with carbon capture and storage".

'Economic case collapses'

Decarbonisation expert Prof Dawid Hanak, from Teesside University, said BP's decision to pull out of the scheme would make it "challenging" to meet the country's goal of producing up to 10GW of low carbon hydrogen by 2030.

Prof Maria Sharmina at the Tyndall Centre for Climate Change Research pointed to the fact that BP had also suggested one reason it pulled out of the scheme was because the companies which it planned to sell its hydrogen to had "postponed decarbonisation plans".

She said: "You can build all the supply infrastructure you like, but if the industrial users who were meant to switch to hydrogen are pulling back, then the economic case collapses."

A DESNZ spokesperson said the hydrogen industry would "play a key role" in delivering its Industrial Strategy and its "mission to become a clean energy superpower".

"That's why this government backed the industry with £500m in the summer spending review," they said.

"Our ambitious Hydrogen Strategy will set out our vision and clear intentions for the UK's industry, driving clean energy investment and unlocking thousands of skilled jobs up and down the country."

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