Jobs blow for Teesside as BP cancels green hydrogen project
The global energy giant is moving away from renewable energy projects but says it remains committed to other schemes on Teesside
An energy project that would have brought hundreds of jobs to Teesside has been cancelled.
Energy giant BP had hoped to create more than 600 construction jobs and then around 100 permanent posts with the construction of a green energy plant at the Teesworks site.
But the energy giant has recent changed its strategy and pulled back from some of its green energy plans after pressure from shareholders to make more money from fossil fuels. BP has cancelled the HyGreen project on Teesside but said it remains committed to a number of other big projects in the area.
BP had said that HyGreen Teesside would have been one of the biggest green hydrogen production facilities in the UK, supplying 500 MW of power by 2030. It had signed early stage agreements with a number of companies on Teesside to take power produced from the project.
A BP spokesman said:
As we set out in our strategy reset announcement last Wednesday, in hydrogen and carbon capture we’re focused on high-graded projects, prioritizing five to seven projects for this decade.
” In the UK, our focus is on the significant projects in Teesside – NZT Power, NEP, and also H2Teesside (blue hydrogen). Therefore, we are no longer progressing our plans to develop HyGreen.”
At the end of February, BP announced a drastic pullback from renewables in favour of more oil and gas, claiming that it went “too far, too fast” on green energy. Chief executive Murray Auchincloss said that while BP was still aiming to hit net zero carbon emissions by 2050, it would slash its annual renewables spending by nearly three-quarters.
The move followed pressure from some investors to boost profits at the firm, but has also angered environmental groups and contradicts guidance by global energy bodies designed to help limit climate change.
Mr Auchincloss said:
Our optimism for a fast (energy) transition was misplaced, and we went too far, too fast.
Cllr Alec Brown, Leader of Redcar & Cleveland Council said:
This is bitterly disappointing news – but we remain optimistic about the future.
“My administration will continue to do all we can to secure jobs and growth and – despite this blow – the bigger picture is BP remains committed to exciting, innovative carbon-capture and green energy projects of international importance right here in the borough. We’ll continue to support and work with BP and all other partners developing the green energy industries which will to help secure jobs and the economic boost that has such huge potential.”
Tees Valley Mayor Ben Houchen said:
We are seeing incredible progress in our plan to develop Teesside as a global centre for green energy – and there remains huge interest from investors to bring world-leading technologies to our region.
“Our partners are continuing to hold detailed discussions with global investors to develop large-scale projects on the Teesworks site, which will build on the achievements we’ve made so far. These achievements includes the near-completion of SeAH Wind’s XXXL monopile factory visited by the King last month, the now-operational Steel River Quay, and the imminent start of construction on Net Zero Teesside Power’s world-leading carbon capture project.”
These are delivering thousands of well-paid, highly skilled jobs and boosting economic growth locally and nationally – and we look forward to securing more investment and making further announcements in the weeks and months ahead.
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Jobs blow for Teesside as BP cancels green hydrogen project, source
