Aberdeen City Council has chosen BP as its preferred bidder for a commercial partnership that will accelerate the city’s ambitions to become a world-class hydrogen hub.
Following a tender process which commenced in June, the Aberdeen Hydrogen Hub concept will enable the continued development of a hydrogen economy in the city.
As preferred bidder, BP will now work with the council to conclude the contractual process that will lead to the set-up of the joint venture.
Work will then commence on the required front end engineering design (FEED) work, with the aim of making a final investment decision on the selected development concept in 2023.
A key part of the programme will involve the creation of Scotland’s first scalable green hydrogen production facility.
Phase 1, which involves delivery of a green hydrogen facility, is targeting first operations from 2024.
Options could include using power drawn from a new solar farm, green power purchase agreements and a private wire grid connection to generate hydrogen for buses, heavy goods vehicles and large vans.
Future phases could then see production scaled up through further investment to supply larger volumes of hydrogen for rail, freight and marine, as well as supply of hydrogen for heat and potentially export.
Aberdeen City Council leader Jenny Laing (pictured, right) said: “This is a huge announcement for Aberdeen. It paves the way for the city to be a world leader in the production of hydrogen-based green fuel and energy.
“It will help create a cleaner, more sustainable city for local people and it also provides us with the opportunity to create hundreds of skilled jobs and add millions to the Aberdeen economy.
“There is tremendous investment potential, and we already have deep-rooted skills and experience in the energy sector to tap into.
“Aberdeen has a worldwide reputation as a pioneering hydrogen city with a net zero emissions vision. We are already leading the way to a greener, cleaner future and working with bp, we intend to put Aberdeen at the forefront of the green economic recovery.
“We already have a successful partnership with bp, who have advised the Council on the delivery of our Energy Transition Strategic Infrastructure Plan and this exciting announcement builds on that work.”
BP UK head of country and senior vice president for Europe Louise Kingham (pictured, centre) said: “BP wants to play a leading role in Scotland’s energy transition as is evidenced by this news and our transformational bid in the ScotWind offshore wind leasing round.
“These new business opportunities are underpinned by our 50-plus years of operations in the North Sea where, based out of Aberdeen, we have built up vast skills and experience that are directly transferable to emerging energy industries.
“We look forward to working with Aberdeen City Council on this exciting project and are pleased that – following the competitive and robust public procurement process – we were able to position bp as the partner of choice.”