BP signs agreement with Abu Dhabi to develop clean energy projects

(Alliance News) - BP PLC on Thursday said it would team with the Abu Dhabi National Oil Co and ...

Alliance News 16 September, 2021 | 8:31PM
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(Alliance News) - BP PLC on Thursday said it would team with the Abu Dhabi National Oil Co and Masdar to invest into clean and low carbon energy, creating potentially thousands of energy jobs.

Masdar, also known as the Abu Dhabi Future Energy Co, is a renewable energy company based in Abu Dhabi.

BP said the first agreement would see the trio collaborate to initially develop 2 gigawatts 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," the UK oil major explained.

Further, 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. The two companies will focus on the application of energy efficiency and storage, cleaner fuels and distributed renewables generation.

Lastly, 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 hubs.

"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," said BP Chief Executive Officer Bernard Looney.

BP said the announcement could enable a significant contribution towards the UK government's target to develop 5GW of hydrogen production by 2030. The move could also lead to the first international investment in the low carbon hydrogen facility in Teesside, north England which aims to produce 1GW of blue hydrogen starting in 2027.

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, BP added.

"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," added UK Prime Minister Boris Johnson.

The stock closed down 1.1% at 305.95 pence on Thursday in London.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
BP PLC 360.65 GBX 1.59

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