Costain has been awarded a front-end engineering and design (FEED) contract by BP for the development of an onshore hydrogen distribution network in Teesside.
This network is intended to transport purified and dehydrated hydrogen from BP’s H2Teesside production facility to industrial users in the region. While this development is framed as a significant step forward for UK decarbonization, it’s essential to critically assess the project’s potential impact against the broader industry context.
BP’s H2Teesside plant is expected to produce 160,000 tonnes of blue hydrogen annually, a type of hydrogen derived from natural gas with carbon capture and storage (CCS) to reduce emissions. While this is being hailed as a “step change” in decarbonization efforts, the reliance on natural gas raises questions about the overall sustainability of the project. Blue hydrogen, though lower in carbon emissions than traditional natural gas, still involves fossil fuel extraction, which some experts argue could prolong dependence on natural gas rather than accelerating the transition to truly green hydrogen.
Regional Transformation: Promises vs. Reality
The project has been touted as transformative for the Teesside region, with promises of job creation and skill development. However, it’s important to question the scale and sustainability of these benefits. While short-term construction jobs and technical roles may be created, the long-term employment prospects and the extent to which these opportunities will benefit the local population remain uncertain. Furthermore, the focus on blue hydrogen may not align with future energy trends, potentially limiting the project’s lasting impact.
H2Teesside is part of the larger East Coast Cluster, a collection of carbon capture, usage, and storage (CCUS) projects. This cluster is central to the UK’s strategy for reducing industrial carbon emissions, particularly on the East coast and in the North Sea. However, the integration of H2Teesside into this cluster should be critically evaluated. While the project is positioned as a leader in the UK’s low-carbon hydrogen economy, it must be benchmarked against global standards and other emerging hydrogen projects to assess its true competitive edge and long-term viability.
