They have signed three agreements, with the first seeing the companies collaborate on the development of 2GW of low carbon hydrogen across hubs in the UK and UAE, intending to expand as the project progresses.
It would support the UK Government’s target to develop 5GW of hydrogen production by 2030 and could also lead to the first international investment in the low carbon hydrogen facility in Teesside, H2 Teesside, which aims to produce 1GW of blue hydrogen from 2027.
The project would also capture and store up to two million tonnes of carbon dioxide a year through the Northern Endurance Partnership (NEP).
The three companies also plan to develop decarbonised air corridors between the UK and UAE – one of the busiest global air travel routes.
In addition, bp and Masdar will explore opportunities to develop and operate sustainable energy and mobility solutions for cities – in the UK, UAE and beyond – on the road to net zero, initially focusing on the applications of energy efficiency and storage, cleaner fuels and distributed renewable energy generation.
Finally, bp and ADNOC will collaborate on decarbonising oil and gas operations in Abu Dhabi, including the potential development of carbon capture, usage and storage (CCUS) hubs.
They would also use advanced methane emission detection and reduction technologies and create Smart Decision Centres in the UAE, where digital and AI technologies would be used to accelerate operational efficiency.
UK 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.”