Advertisement Advertisement
Advertisement Advertisement

bp and Ørsted partner to develop Lingen Green Hydrogen project

Global oil and gas major bp plc and Denmark-headed renewable energy major Ørsted A/S have signed a Letter of Intent (LOI) to work together to develop a ‎project for industrial-scale production of green hydrogen at bp's Lingen refinery in Emsland, north-west Germany – the Lingen Green Hydrogen project.

bp plc and Ørsted A/S have signed a Letter of Intent (LOI) to work together to develop a ‎project for industrial-scale production of green hydrogen at bp’s Lingen refinery in Emsland, north-west Germany. The Lingen Refinery processes about five million tonnes of crude oil a year (≈ 100,000 barrels ‎a day), producing fuels, heating oil, and chemical feedstocks. In 2018 Lingen conducted the ‎world’s first trial of green hydrogen in a fuel refinery (photo courtesy bp).

Under the 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.

In the proposed Lingen Green Hydrogen project, the two companies intend to build an initial 50 ‎MW electrolyzer and associated infrastructure at bp’s Lingen Refinery – a significant step in developing ‎bp’s hydrogen business.

The electrolyzer 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.‎

Hydrogen is widely used in refinery processes whereas in Lingen – it is now typically ‎produced by reforming natural gas, which does result in carbon dioxide (CO2) emissions, also known ‎as ‘grey’ hydrogen.‎

Hydrogen will have ‎an increasing role to play in meeting the energy demands of a decarbonizing world. And we ‎are determined to build a leading position in this emerging industry. Bringing together Ørsted ‎and bp, Lingen Green Hydrogen offers the opportunity both to accelerate significant ‎emissions reduction in our refinery and build experience of large-scale green hydrogen ‎production and deployment. This has the potential to play an important role in the ‎development of a hydrogen economy, in Germany and beyondsaid Dev Sanyal, EVP Gas & Low Carbon Energy, bp.

Cover 20 percent of hydrogen demand

The 50 MW electrolyzer project is expected to produce one tonne an hour of green ‎hydrogen or almost 9 000 tonnes a year. This would be sufficient to replace around 20 percent of ‎the refinery’s current grey hydrogen consumption, avoiding around 80 000 tonnes of CO2 ‎equivalent emissions a year.

In addition to green hydrogen production, bp and Ørsted intend to focus on maximizing the ‎efficiency of the project’s electrolysis system, including assessing sustainable uses for the ‎main by-products of the process, primarily oxygen and low-grade excess heat.‎

bp and Ørsted have together applied for funding for the Lingen Green Hydrogen project from ‎the European Innovation Fund – one of the largest funding programmes for innovative low carbon ‎technologies, focusing particularly on energy-intensive industries.

Ambition to ramp up ten-fold

In the coming decades, hydrogen is expected to play a critical role in decarbonising the ‎power, industry, and transport sectors, especially those that are hard-to-electrify or ‎expensive-to-electrify.

Located 57 km off the north-west coast of Germany, the 450 MW capacity Borkum Riffgrund 2 Offshore Wind Farm commenced commercial operations in April 2019. It is jointly owned by Gulf International Holding (GIH), a subsidiary of Thailand-headed Gulf Energy Development PCL and Ørsted A/S (photo courtesy Ørsted).

The development of businesses in emerging technologies such as ‎hydrogen and carbon capture use and storage (CCUS) is an integral part of bp’s strategy of ‎transforming into an integrated energy company.‎

The project is also intended to support a longer-term ambition to build more than 500 MW of ‎renewable-powered electrolysis capacity at Lingen.

This could provide green hydrogen to ‎both meet all the refinery’s hydrogen demand and provide feedstock for potential future ‎synthetic fuel production.

Heavy industries such as refineries use large quantities of hydrogen in their manufacturing ‎processes. They will continue to need hydrogen, but replacing the current fossil-based ‎hydrogen with hydrogen produced from renewable energy can help these industries ‎dramatically lower their CO2 footprint. But first, renewable hydrogen has to become cost-competitive with fossil-based hydrogen, and for that, we need projects such as this with bp’s ‎Lingen refinery which will demonstrate the electrolyser technology at a large scale and ‎showcase the real-life application of hydrogen-based on offshore wind, said Martin Neubert, EVP and CEO of Offshore Wind at Ørsted.

We're using cookies. Read more