BP’s recent moves in Teesside highlight a paradox in the company’s energy strategy. While the oil major is pushing forward with the H2 Teesside project, one of the UK’s largest blue hydrogen facilities, it has simultaneously scaled back its broader green agenda.

H2 Teesside aims to capture and store over 2 million tonnes of CO2 annually, equivalent to the emissions from heating 1 million households. While this sounds impressive, the environmental benefits of blue hydrogen—produced from natural gas with carbon capture—are still hotly debated. Critics argue that blue hydrogen is merely a stopgap measure that allows companies to continue fossil fuel extraction under the guise of sustainability. Moreover, the carbon capture process itself is energy-intensive and far from perfect, often failing to sequester all emissions.

Engineering Contracts Signed, But What About Long-Term Viability?

BP has entered the final stages of negotiations with the UK government and signed engineering design contracts with Costain and Technip Energies. While these developments are essential steps forward, they also raise questions about the long-term viability of blue hydrogen. Is this a sustainable solution, or will it become obsolete as green hydrogen technology, which relies on renewable energy, becomes more affordable and widespread?

The H2 Teesside project is expected to create approximately 1,300 jobs during its construction phase and 130 permanent jobs once operational. While job creation is undoubtedly a positive outcome, it must be balanced against the broader environmental impact. As BP continues to invest heavily in fossil fuel projects like drilling in the Gulf of Mexico, it’s clear that the company’s focus is not solely on a green transition.