BP, ADNOC (Abu Dhabi National Oil Company) 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 three companies collaborate to initially develop 2GW of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses. The announcement 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 (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.”

BP and Masdar have also agreed to explore opportunities to develop, build and operate sustainable energy and mobility solutions for cities. The two companies will initially focus on the application of energy efficiency and storage, cleaner fuels and distributed renewables generation.

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