bp and Ørsted have today signed a Letter of Intent (LOI) to work together to develop a project for industrial-scale production of green hydrogen.
In their proposed Lingen Green Hydrogen project, the two firms intend to build an initial 50 megawatt (MW) electrolyzer and associated infrastructure at bp’s Lingen Refinery in northwest Germany. This will be powered by renewable energy generated by an Ørsted offshore wind farm in the North Sea and the hydrogen produced will be used in the refinery.
Under their LOI, bp and Ørsted will now work together to further define the project, agree on definitive documents, and plan to make a final investment decision (FID) in early 2022, subject to appropriate enabling policies being in place. The companies anticipate the project could be operational by 2024.
Powered by Ørsted offshore wind, the project will initially replace 20% of natural gas-based hydrogen used at bp’s Lingen refinery
The scale of the project will support future reductions in green hydrogen costs.
Electrolysis splits water into hydrogen and oxygen gases. When powered by renewable energy, this produces ‘green’ hydrogen, without generating direct carbon emissions. Hydrogen is widely used in refinery processes whereas in Lingen – it is now typically produced by reforming natural gas, which does result in CO2 emissions. This is also known as ‘grey’ hydrogen.
a significant step in developing bp’s hydrogen business. Green hydrogen is made by the electrolysis of water using renewable power, producing zero emissions.
bp’s first full-scale green hydrogen project, a significant step in the strategic development of new hydrogen business aligned with German and EU hydrogen strategies
Lingen refinery, Germany.