Aberdeen City Council and bp announced the formation of a joint venture to develop a scalable green hydrogen production, storage, and distribution plant powered entirely by renewable energy in the city.
Aberdeen Hydrogen Hub will be created in three phases to meet expanding hydrogen demand.
Phase one, which includes the construction of a solar-powered green hydrogen production and transportation refueling facility, is scheduled to begin production in 2024 and produce over 800 kg of green hydrogen per day – enough to fuel 25 buses and a similar number of other fleet vehicles.
Aberdeen City Council and bp – which will manage the joint venture as bp Aberdeen Hydrogen Energy Limited – have committed £3 million for initial design work, with a final investment decision for phase one facility construction likely in early 2023.
Future phases may see production expanded up through additional investment to meet increased demand for green hydrogen for rail, freight, and marine, as well as for heat and maybe export. This expansion would be made possible by the anticipated growth in the availability of local renewable energy sources, especially those resulting from the ScotWind offshore wind leasing cycle.
Aberdeen City Council’s objective to create a climate-positive city and inclusive growth will be aided by the Aberdeen Hydrogen Hub program, which will assist hydrogen supply chain development, skills and training, and wider community benefits.
According to a research commissioned by Aberdeen City Council, if the hydrogen hub facilitates the export of renewable hydrogen, up to 700 skilled employment in the hydrogen industry might be produced by 2030.
“Today is a milestone in delivery of our hydrogen program. We are now seeing the benefits of having our 2015 Hydrogen Plan in place that provided a clear statement on the scale of our ambition to deploy hydrogen power in Aberdeen.” Councillor Jenny Laing, leader, Aberdeen City Council.
Aberdeen City Council Leader Councillor Jenny Laing said: “Today is a milestone in delivery of our hydrogen programme. We are now seeing the benefits of having our 2015 Hydrogen Plan in place that provided a clear statement on the scale of our ambition to deploy hydrogen power in Aberdeen.
“We were ahead of the game then, and it is impressive that seven years on, we have a developing hydrogen economy with 85 hydrogen-powered vehicles deployed across the city, refuelling infrastructure, and a joint venture company with bp to deliver the hydrogen production and distribution hub.
“That next phase will see scale production of green hydrogen in response to growing demand and maintains Aberdeen’s place at the forefront of the UK and Scotland’s transition to renewable energy.”
Collaboration with cities and businesses to shape their routes to net zero is a critical component of bp’s strategy. By 2030, bp plans to work with 10-15 cities worldwide to provide innovative, integrated, and decarbonized energy solutions on a large scale to assist them in achieving their net zero-emissions goals. Additionally, by 2030, bp hopes to capture 10% of the low carbon hydrogen market in important geographies.
Louise Kingham CBE, bp’s UK head of country and senior vice president for Europe, said: “bp is investing across all the energy transition growth areas in the UK. In fact, we have committed to spend £2 in the UK for every £1 generated here out to the middle of this decade.
“Today’s announcement is evidence of that commitment in action and is supported by other ambitious plans to produce clean energy from UK offshore wind, develop carbon capture in Teesside and grow the country’s electric vehicle charging network. bp is investing across all the energy transition growth areas in the UK. In fact, we have committed to spend £2 in the UK for every £1 generated here out to the middle of this decade.”
“With these new business opportunities underpinned by our long-standing position in North Sea oil and gas, we are showing what an integrated energy company can do.
“And all of this couldn’t be possible without the skills and experience of a talented workforce and supply chain, eager to help make the UK’s net zero ambitions a reality.”
Aberdeen City Council’s Convenor for City Growth and Resources Councillor Ryan Houghton added: “Aberdeen City Council has spent £7million to date to deliver a hydrogen programme that in turn has seen us lever in £35m additional investment from external partners. That sends a positive signal to investors that we are delivering our ambition, and a feature of our success is how industry has responded to the opportunity we have created.
“This joint venture with bp provides the city with the expertise to grow a supply chain, develop new skills and jobs and I believe this model will be an exemplar for how councils implement plans to reach net zero.”
Dr Oliver Taylor, incoming chief executive for bp Aberdeen Hydrogen Energy Limited, said: “We’ve long held the view that the energy and mobility assets that cities control can drive change, so we’re delighted to be announcing this public-private joint venture. But we also believe that working with and within cities is key to achieving decarbonization at scale.
“By working with key fleets in and around the city we’re aiming to stimulate demand for hydrogen and help the people and businesses of Aberdeen secure value through the energy transition.”
Aberdeen City Council began its hydrogen adventure more than a decade ago and has previously proved how demand can be generated within cities by powering a fleet of 25 buses, 60 public sector vehicles, rubbish trucks, and the P&J Live events complex with the zero-emission fuel. Over 2 million passengers have ridden the city’s hydrogen buses, and the city has saved more than 100 tonnes of CO2 in the last six years.
