Supermajor BP, Abu Dhabi National Oil Company (Adnoc) and compatriot Masdar have signed a trio of agreements aimed at driving billions of dollars worth of investments into clean and low carbon energy solutions.
The three players inked a strategic partnership on Thursday and signed deals to develop low carbon hydrogen hubs, work on sustainable energy and mobility solutions for cities in the UK, UAE and other countries.
Efforts also include decarbonising existing oil and gas operations through the use of methane detection, carbon capture, utilisation and storage (CCUS) and digital technologies, BP said in a statement.
The first agreement would see the companies “collaborate to initially develop two gigawatts of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses,” BP said.
“Today’s announcement could enable a significant contribution towards the UK Government’s target to develop five gigawatts of hydrogen production by 2030,” it added.
The agreement could also potentially “lead to the first international investment in the low carbon hydrogen facility in Teesside (H2Teesside), which aims to produce one gigawatt of blue hydrogen starting in 2027.”
The H2Teesside facility aims to capture and store up to two million tonnes of carbon dioxide a year.
BP, Adnoc and Masdar also plan to work on decarbonised air corridors between the UK and UAE, as a part of the first agreement.
The second agreement aims at developing and operating “sustainable energy and mobility solutions for cities – in the UK, UAE and beyond – on the road to net-zero.”
Finally, as a part of the third agreement between Adnoc and BP, the companies “plan to deepen their collaboration to decarbonise oil and gas operations in Abu Dhabi, including the potential development of carbon capture use and storage hubs.”
The two companies also plan to “harness advanced methane emission detection and reduction technologies.”
Bernard Looney, the chief executive of BP said “the UK and UAE governments have bold plans for decarbonisation,” and the company sees “massive business opportunity to generate the clean energy the world wants and needs.”
UK’s Prime Minister Boris Johnson said the agreements are a “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,” he added.