Energy deal

BP and Iberdrola in green hydrogen venture

electric charging
Investment is planned in EV charging infrastructure

ScottishPower’s parent company Iberdrola and BP have announced a partnership to develop green hydrogen.

They will form a joint venture for large-scale green hydrogen production in the UK, Spain and Portugal, as well as production of derivatives such as green ammonia and methanol, which could be exported to Northern Europe.

The JV will also aim to significantly expand fast electric vehicle public charging infrastructure to support the adoption of electric vehicles.

Ignacio Galan, chair of Spain-based Iberdrola, said: “The scale of this challenge requires alliances between companies such as Iberdrola and bp, which have the technology and knowledge necessary to help accelerate Europe’s industrial development and generate, at the same time, well-being and new opportunities for all through clean energy.”

Both companies are already involved in green hydrogen projects in the UK, with ScottishPower and carbon capture company Storegga announcing a series of green hydrogen projects in the Highlands in May.

ScottishPower is also developing the Whitelee green hydrogen project, which was awarded £9.4 million in funding in November 2021.

BP unveiled plans for a 500MWe green hydrogen project dubbed HyGreen Teesside in November 2021.

Bernard Looney, CEO, of BP said: “Creating the lower carbon energy solutions that our customers want and need requires the integration of different technologies, capabilities and forms of energy.

“We can deliver this faster and at scale when we work in partnership with others. We have enormous respect for Iberdrola who have been an early leader in the energy transition – and are very excited about what we can deliver together.”

Developing of green hydrogen projects in the UK has been growing over the last year, following the release of the government’s hydrogen strategy in August 2021, which outlined a target of 5GW of low carbon hydrogen production capacity by 2030.

In addition to ScottishPower and BP’s projects, Octopus Hydrogen and BayWa r.e. have signed a Memorandum of Understanding for the development of green hydrogen sites and Macquarie’s GIG has announced a plan to develop a site on Orkney, amongst others.

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