Costain has been awarded a significant contract to design BP’s new hydrogen pipeline in Teesside.
- This project is part of BP’s H2Teesside initiative, a major step in UK’s hydrogen economy.
- Costain will handle the front-end engineering design for a 31km distribution network.
- The project is set to complete in 2025, enhancing local industry and job creation.
- BP aims to replace natural gas with low carbon hydrogen for industrial users.
Costain has secured a pivotal contract for BP, involving the front-end engineering and design (FEED) of a 31-kilometre onshore pipeline. This pipeline is intended to transport purified and dehydrated hydrogen across Teesside, linking BP’s new production facility to a range of industrial consumers. The contract falls under BP’s East Coast Cluster initiative, particularly its H2Teesside project, which seeks to spearhead hydrogen production within the UK.
Expected to produce around 160,000 tonnes of low carbon hydrogen annually, the H2Teesside project aims to displace current natural gas usage among industrial users. In doing so, it hopes to establish Teesside as a pivotal player in the burgeoning hydrogen economy. Costain’s multidisciplinary engineering team is tasked with completing this crucial phase by 2025, setting the stage for further development and execution of the hydrogen network.
Technip Energies complements this endeavour by handling FEED for the hydrogen production facilities at H2Teesside. Their role includes developing the execution methodology and project timeline, with completion also anticipated in 2025. Their involvement underscores the collaborative effort driving the project forward, with detailed engineering and preliminary works slated to commence later in the year. However, these phases remain contingent upon final investment decisions.
Previously, Costain completed FEED for the associated onshore CO2 pipeline, marking an ongoing partnership with BP. Building upon this, Costain has been selected to manage subsequent stages of engineering, procurement, and construction, ensuring seamless progress towards realising the hydrogen pipeline.
Sam White, Costain’s managing director of natural resources, emphasised the project’s transformative impact on UK decarbonisation, highlighting the opportunity to deliver crucial infrastructure. He remarked, “This exciting project is a step change for UK decarbonisation. Our in-house engineering expertise will design a world-leading network that will safely transport hydrogen to provide industrial users with an alternative to natural gas. This is a key step in the development of the hydrogen economy.”
In alignment with these sentiments, Andy Lane, BP’s vice president for hydrogen and carbon capture, utilisation and storage, reflected on the project’s role in propelling Teesside into a leadership position within the UK’s low carbon hydrogen sector. He stated, “The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low carbon hydrogen economy.”
The collaboration between Costain and BP on the hydrogen pipeline marks a significant advancement in the UK’s transition to a low carbon economy.
