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Aberdeen Hydrogen Hub investment decision nears

  • Publish Date: Posted 4 months ago
  • Author: Steve Walia

​In a recent meeting concerning the Aberdeen Hydrogen Hub, Aberdeen City Council confirmed plans for a final investment decision (FID) later this year. Earlier this year, the local authority's planning panel endorsed proposals for the Aberdeen Hydrogen Hub, a project spearheaded by BP Aberdeen Hydrogen Energy.

 

The first phase of the initiative aims to commence production by 2025, providing more than 800 kg of eco-friendly hydrogen daily. As the project advances, it anticipates serving truck, rail, and marine transport while harnessing energy from large-scale renewable sources such as offshore wind.

 

The recent meeting revealed that the initial phase of this renewable energy endeavour will include a solar farm and a grid connection. The solar farm is designated for the former Ness landfill and will link to the Hareness Road site through an underground solar grid connection.

 

The meeting held by Aberdeen City Council on Monday sought approval for phase one, a move that could prompt the local authority to finalise the FID. Due to a submitted amendment related to the finances of the independent company, BP, the discussions were held in private.

 

Aberdeen City Council said the revised business case received approval at Monday's Urgent Business Committee. Their BP partners and joint venture directors will assess investment approvals, with a final decision anticipated later this year.

 

In March 2021, the council passed a budget of £19.4 million spanning the financial years 2021/22 and 2022/23. The document accompanying Monday's session confirmed that the council has contributed £1.975 million in funding to the joint venture enterprise to facilitate phase one's development.

 

Last year, Aberdeen City Council selected BP as the preferred candidate to construct the production hub. This development coincides with the release of BP's third-quarter results. BP disclosed profits of £2.7 billion for the three-month period ending on 30th September.