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BP Awards FEED Contract to Technip Energies for H2Teesside
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BP plc (BP - Free Report) , the British oil and gas giant, has awarded a front-end engineering design (FEED) contract to Technip Energies for its H2Teesside project in the United Kingdom. The H2Teesside project is anticipated to become one of the largest low-carbon hydrogen production facilities in the United Kingdom. It is equipped with carbon capture technology.
The H2Teesside project is aimed at producing approximately 1.2 gigawatts (GW) of low-carbon hydrogen. The figure is equivalent to more than 10% of the country’s 2030 hydrogen production target. The production is expected to start in 2027. The project has the capacity to capture and send around 2 million tons of carbon dioxide per year for storage.
FEED Contract Details
Technip Energies will conduct a FEED study for the project. The company will utilize its expertise and global best practices to develop a scaled project incorporating hydrogen and carbon capture technologies as a part of the FEED study.
A final investment decision (FID) regarding the project is expected by 2025. If the project proceeds with an FID, the next step would involve choosing a contractor. If Technip Energies is chosen as the contractor, it would be awarded the full engineering, procurement, construction and commissioning package for the project.
Integration With the East Coast Cluster
The H2Teesside project is intended to be a part of the East Coast Cluster. The hydrogen production and distribution pipeline in the project will be integrated into other decarbonization projects in the East Coast Cluster. The carbon dioxide captured in the hydrogen production facility will be transported to the Northern Endurance Partnership storage facilities.
BP announced that recent agreements are propelling the H2Teesside project closer to securing EPC contracts and beginning construction. The project is aimed at positioning the region as a prominent hydrogen hub. The integrated carbon capture technology should significantly contribute to decarbonizing the industrial sector on Teesside.
VAALCO Energyis an independent energy company involved in upstream business operationswith a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for FTI in the future.
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BP Awards FEED Contract to Technip Energies for H2Teesside
BP plc (BP - Free Report) , the British oil and gas giant, has awarded a front-end engineering design (FEED) contract to Technip Energies for its H2Teesside project in the United Kingdom. The H2Teesside project is anticipated to become one of the largest low-carbon hydrogen production facilities in the United Kingdom. It is equipped with carbon capture technology.
The H2Teesside project is aimed at producing approximately 1.2 gigawatts (GW) of low-carbon hydrogen. The figure is equivalent to more than 10% of the country’s 2030 hydrogen production target. The production is expected to start in 2027. The project has the capacity to capture and send around 2 million tons of carbon dioxide per year for storage.
FEED Contract Details
Technip Energies will conduct a FEED study for the project. The company will utilize its expertise and global best practices to develop a scaled project incorporating hydrogen and carbon capture technologies as a part of the FEED study.
A final investment decision (FID) regarding the project is expected by 2025. If the project proceeds with an FID, the next step would involve choosing a contractor. If Technip Energies is chosen as the contractor, it would be awarded the full engineering, procurement, construction and commissioning package for the project.
Integration With the East Coast Cluster
The H2Teesside project is intended to be a part of the East Coast Cluster. The hydrogen production and distribution pipeline in the project will be integrated into other decarbonization projects in the East Coast Cluster. The carbon dioxide captured in the hydrogen production facility will be transported to the Northern Endurance Partnership storage facilities.
BP announced that recent agreements are propelling the H2Teesside project closer to securing EPC contracts and beginning construction. The project is aimed at positioning the region as a prominent hydrogen hub. The integrated carbon capture technology should significantly contribute to decarbonizing the industrial sector on Teesside.
BP’s Zacks Rank and Key Picks
Currently, BP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are VAALCO Energy (EGY - Free Report) , MPLX LP (MPLX - Free Report) and TechnipFMC plc (FTI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VAALCO Energyis an independent energy company involved in upstream business operationswith a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for FTI in the future.