BP, ADNOC and Masdar team up in multi-billion dollar investment deal for clean and low carbon energy

BP, Abu Dhabi National Oil Company (ADNOC) and Masdar have partnered up to develop low carbon hydrogen hubs and create decarbonised air travel corridors between the UK and UAE in a deal that will see “billions” of dollars of investment.

Announced yesterday (16 September), the partnership is formed of three agreements. The first agreement will see the companies team up to initially develop 2GW of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses.

The UK government has a target of 5GW of hydrogen production by 2030 and the agreement has received the backing of the UK Prime Minister Boris Johnson. He said the deal was “a fantastic investment in the industries of the future” and that the UK’s Global Investment Summit later this year will “attract more exciting investment like this to the UK”.

This first agreement also covers decarbonised air corridors between the UK and UAE, one of the world’s busiest travel routes.

The second agreement will see BP and clean energy company Masdar explore opportunities to develop, build and operate sustainable energy and mobility solutions for cities in the UK and the UAE. These will initially focus on the application of energy efficiency and storage, cleaner fuels and distributed renewables generation.  

In the third and final agreement, BP and ADNOC plan to explore the potential to decarbonise oil and gas operations in Abu Dhabi through Carbon Capture Use and Storage (CCUS) hubs.

The areas of collaboration align with both the UK government’s 10-point plan for a green industrial revolution and the UAE Government’s ‘Principles of the 50’, BP said in a media statement.

This week, BP poached RWE’s head of renewables to replace its departing executive vice president of its gas and low carbon energy division.