ADNOC, bp and Masdar have signed three agreements with the potential to lead to billions of dollars of investment into clean and low carbon energy. The first agreement would see the companies collaborate to develop 2GW of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses. This could enable a significant contribution towards the UK government’s target to develop 5GW 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?1GW of?blue hydrogen?starting in 2027. H2Teesside would capture and store up to?two million tonnes of carbon dioxide a year through the Northern Endurance Partnership (NEP). The investment is expected to diversify and bolster local supply chains in both the UK and UAE.
As part of the first agreement, the partnership also intends to pioneer decarbonised air corridors between the UK and UAE – one of the busiest global air travel routes. 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 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.
The expected areas of collaboration align with the key areas of both the UK government’s 10-point plan for a green industrial revolution and the UAE government’s ‘Principles of the 50’, which includes the development of a dynamic domestic economy through scientific and technical excellence.