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bp, ADNOC and Masdar to form strategic partnership to provide clean energy solutions for UK and UAE

in Exploration Development, Press Releases, Upstream
bp, ADNOC and Masdar to form strategic partnership to provide clean energy solutions for UK and UAE
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bp, ADNOC and Masdar have signed three agreements with the potential to lead to billions of dollars of investment into clean and low carbon energy, creating potentially thousands of energy jobs.

The first agreement would see the 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. Access to clean hydrogen – a critical fuel in the decarbonization of hard-to-abate industries – can reduce emissions, ‎enable new, low carbon products, and unlock future fuels. Today’s 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 decarbonized 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 chief executive officer, said: “The UK and UAE governments have bold plans for decarbonization. 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.”

Prime Minister Boris Johnson said:?“This is a fantastic investment in the industries of the future, creating high value jobs across the UK as we build back better and greener.?It is clear indication that businesses in the energy sector are taking the transition to cleaner solutions seriously, and a major boost to the UK’s own ambitious net zero goals. Our Global Investment Summit later this year will attract more exciting investment like this to the UK, demonstrating that economic growth, technological advancement and fighting climate change go hand-in-hand.”

 

H.E. Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO, ADNOC and Chairman, Masdar added: “The UK and UAE have enjoyed decades of strong economic ties and the agreements signed today between ADNOC, Masdar and bp will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives.”

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 decarbonize oil and gas operations in Abu Dhabi, including the potential development of Carbon Capture Use and Storage (CCUS) hubs. The two companies would also 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.

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