BP PLC (LSE:BP.) has confirmed it is planning to build a green-hydrogen production facility in the Northeast of England.

Named HyGreen Teesside, the FTSE100 company hopes the site would be able to deliver 500Mwe (megawatt electrical output) of hydrogen production by 2030.

BP wants to start production by 2025, with an initial phase of 60Mwe of installed hydrogen production capacity.

HyGreen Teesside is the latest addition in BP’s efforts to shift towards more carbon-friendly forms of energy, alongside its blue hydrogen project, H2Teesside.

The difference between blue and green hydrogen is that the former still produces some carbon, whilst the latter is completely carbon free.

BP believes the two sites together have the potential to deliver 30% of Britain’s 5GW target for hydrogen production by 2030.

Louise Jacobsen Plutt, BP’s senior vice president for hydrogen said, “Together, HyGreen and H2Teesside can help transform Teesside into the UK’s green heart, strengthening its people, communities and businesses.

It is hoped the site would fuel the development of the region into the UK’s first major hydrogen transport hub, becoming the driving force behind the large-scale decarbonisation of heavy transport, airports, ports, and rail in the UK.

Transport secretary Grant Shapps said, “This exciting project builds on our ongoing development of hydrogen in the area through the Tees Valley Hydrogen Transport Hub. It’ll help pave the way for its use across all transport modes, creating high-quality, green jobs in the process.”

BP’s share price was up 4.05% at the time of publication.

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