bp, ADNOC and Masdar have signed three agreements with the potential to lead to billions of dollars of investment into clean and low carbon energy, creating potentially thousands of energy jobs.

The first agreement would see the companies collaborate to initially develop 2GW of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses. Access to clean hydrogen – a critical fuel in the decarbonization of hard-to-abate industries – can reduce emissions, ‎enable new, low carbon products, and unlock future fuels. Today’s announcement could enable a significant contribution towards the UK Government’s target to develop 5GW of hydrogen production by 2030. 

It could also lead to the first international investment in the low carbon hydrogen facility in Teesside (H2Teesside), which aims to produce 1GW of blue hydrogen starting in 2027. H2Teesside would capture and store up to two million tonnes of carbon dioxide (CO2) a year through the Northern Endurance Partnership (NEP). The investment is expected to support thousands of jobs and stimulate economic growth. It is also expected to diversify and bolster local supply chains in both the UK and UAE.

As part of the first agreement, bp, ADNOC and Masdar also intend to pioneer decarbonized air corridors between the UK and UAE – one of the busiest global air travel routes – further strengthening the commercial and cultural ties between the two countries in a sustainable way.

Bernard Looney, bp’s chief executive officer, said: “The UK and UAE governments have bold plans for decarbonization. The UK is our home and we have worked in the UAE for nearly a century. By partnering with the visionary leaders of ADNOC and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs – and at the same time revitalise local economies and create the jobs of the future.”

Prime Minister Boris Johnson said: “This is a fantastic investment in the industries of the future, creating high value jobs across the UK as we build back better and greener. It is 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.”

H.E. Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO, ADNOC and Chairman, Masdar added: “The UK and UAE have enjoyed decades of strong economic ties and the agreements signed today between ADNOC, Masdar and bp will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives.”

bp and Masdar have also agreed to explore opportunities to develop, build and operate sustainable energy and mobility solutions for cities – in the UK, UAE and beyond – on the road to net zero. The two companies will initially focus on the application of energy efficiency and storage, cleaner fuels and distributed renewables generation.

Finally, bp and ADNOC plan to deepen their collaboration to decarbonize oil and gas operations in Abu Dhabi, including the potential development of Carbon Capture Use and Storage (CCUS) hubs. The two companies would also harness advanced methane emission detection and reduction technologies and create Smart Decision Centres in the UAE, where digital and AI technology would then be used to accelerate operational efficiency.

The expected areas of collaboration align with the key areas of both the UK government’s 10-point plan for a green industrial revolution and the UAE Government’s ‘Principles of the 50’, which includes the development of a dynamic domestic economy through scientific and technical excellence.

Notes:

   - bp has been an investor in Abu Dhabi since 1939 and was at the forefront of the discovery of oil in the Emirate in 1958.
   - In Abu Dhabi, bp’s interests include joint venture partnerships with Abu Dhabi National Oil Company (ADNOC) and shareholdings in ADNOC Onshore (BP share 10%), ADNOC LNG (BP share 10%), and National Gas Shipping Company Ltd (BP share 10%).
   - bp’s net share of production from Abu Dhabi is around 170,000 barrels of oil per day from ADNOC Onshore. Capacity is almost 200 mbd net, and actual production is in line with OPEC arrangements.
   - bp and Masdar have collaborated on fostering innovation in the UAE. The Catalyst, the region’s first technology start-up accelerator focused on sustainability, was launched in November 2015.
   - The NEP, which bp is operating on behalf of its partners, would decarbonize the East Coast Cluster, with the potential to capture and store almost 50% of the total carbon emissions from all UK industrial clusters.
   - H2 Teesside would be located in Teesside in north-east England and, with a final investment decision (FID) in early 2024, could begin production in 2027 or earlier. bp has begun a feasibility study into the project to explore technologies that could capture up to 98% of carbon emissions from the hydrogen production process.
   - The NEP will also enable the East Coast Cluster which is bidding to develop the common infrastructure needed to transport CO2 from emitters across the Humber and Teesside to secure offshore storage in the Endurance aquifer in the Southern North Sea. NEP will support levelling up – protecting thousands of jobs across the region.
   - Air bp has a joint venture with the Government of Sharjah on the Anabeeb pipeline and in import storage, and aviation fuels supply at Dubai and Sharjah airports in the UAE.
   - bp was involved in fuelling the first Sustainable Aviation Fuel (SAF) flight by an airline in February 2008 and has since been focussing on viable SAF supply opportunities. bp are one of the leading marketers of SAF globally, supplying to more than 20 locations across three continents.

About bp

bp (NYSE:BP) is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.

About Mubadala

Mubadala Investment Company — a sovereign investor — manages a diverse portfolio of assets and investments in the United Arab Emirates and abroad, to generate sustainable financial returns for its shareholder, the Government of Abu Dhabi.
Mubadala is investing and partnering at the leading edge of global growth and innovation to create opportunities for future generations. We will continue to support our leadership’s vision, as we build upon the legacy of the late Sheikh Zayed bin Sultan Al Nahyan, who envisioned a free, stable and dignified life for the people of this country.

About Masdar

Masdar is a global leader in renewable energy and sustainable urban development. Over the past decade, we have pioneered commercially viable solutions in clean energy, sustainable real estate and clean technology in the UAE and around the world.
Headquartered in Abu Dhabi, we develop renewable energy projects, realise low-carbon urban development and advance clean-tech innovation. We also deliver world-class knowledge and industry platforms.
At Masdar, we are supporting the UAE’s transition towards a knowledge-based economy. We aim to be a model for the commercial adoption of clean technologies, and a showcase of the UAE’s wider commitment to sustainability.