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BP to Develop Green Hydrogen Production Facility in England

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·4-min read
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BP plc BP announced plans to establish a massive green hydrogen production facility in England to support the country's transition away from fossil fuels.

Known as HyGreen Teesside, the project is expected to deliver up to 500-megawatt electrical input (MWe) of hydrogen production ‎by 2030. In the initial stage, the project aims to produce 60 MWe of green hydrogen by 2025.

Green hydrogen is expected to make a significant contribution to clean energy transitions. However, its future uses and costs are highly uncertain. Per BP, the project is expected to produce hydrogen per demand ‎and build on to reduce costs.

The Hygreen Teesside project is the latest addition to BP's U.K. business portfolio. In March, BP announced another hydrogen project, H2Teesside, which will generate up to 1 GW of blue hydrogen by 2030. The two Teesside facilities can provide 30% of Britain's ‎‎2030 target for hydrogen production.

Teessideis home to five of the UK's top 25 carbon dioxide emitters, with Teesside industries comprising 5.6% of the country's industrial emissions. HyGreen Teesside is the latest in a series of approaches to enhance renewable projects in the area, mainly hydrogen. The project will be a driving force for large-scale decarbonization of industrial sectors, including heavy transport, airports, ports and ‎rail in the U.K.

The HyGreen Teesside project marks significant progress in developing BP's hydrogen business. A final investment decision is expected to take place in 2023, with an aim to commence production by 2025.

BP is also planning green hydrogen ‎projects at its refineries in the Netherlands, Spain and Germany. BP implemented a feasibility study to seek opportunities for green hydrogen production in Australia. Also, the company was selected as the preferred bidder to develop a green hydrogen ‎production hub in Scotland.

Company Profile

Headquartered in London, the U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.

Zacks Rank & Other Key Picks

BP currently flaunts a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Callon Petroleum Company CPE solely focuses on the exploration, and production of oil and gas resources in the Permian Basin. CPE boasts an impressive footprint throughout the core of the Permian Basin, which is the highest-producing shale play in the United States. Callon Petroleum, currently valued at $2.9 billion, entered the basin in 2009 and has been strengthening its foothold in the region since then.

In the past year, shares of Callon Petroleum have gained 380.1% compared with Zacks Exploration and Production Industry's growth of 111%. CPE's earnings for 2021 are expected to surge 222.7% year over year. Callon Petroleumcurrently has a Zacks Style Score of A for both Growth and Momentum. CPE has witnessed five upward revisions in the past 30 days.

Devon Energy Corporation DVN is an independent energy company engaged in the exploration, development and production of oil and natural gas. Devon's strong U.S. operations are spread across the key oil assets of Delaware Basin, Eagle Ford, Anadarko Basin, Williston Basin and Powder River Basin. At 2020-end, Devon Energy proved reserves of approximately 752 million barrels of oil equivalent.

In the past year, the DVN stock has soared 198.1% compared with the industry's growth of 111%. In the past 60 days, the Zacks Consensus Estimate for Devon Energy's 2021 earnings has been raised by 20.6%. DVN is also projected to see a year-over-year earnings surge of 3877.8% in 2021. DVN's free cash flow at the end of third-quarter 2021 was $1.1 billion, up eight-fold from fourth-quarter 2020 levels. The company will continue to prioritize free cash flow generation in 2022 and deploy a major portion of the same to dividends and share buybacks.

Marathon Oil Corporation MRO, based in Houston, TX, is a leading oil and natural gas exploration and production company. MRO's operations are mainly concentrated in the United States (including Oklahoma, Eagle Ford, Bakken and Northern Delaware) and Equatorial Guinea. As of 2020 end, MRO had approximately 972 million oil-equivalent barrels in net proved reserves (52% crude oil/condensate and 69% proved developed) and 86% was located in the United States.

In the past year, shares of Marathon have gained 159.3% compared with the industry's growth of 111%. MRO's earnings for 2021 are expected to surge 212.1% year over year. Marathon currently has a Zacks Style Score of B for Growth and A for Momentum.


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BP p.l.c. (BP) : Free Stock Analysis Report
 
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