Costain has scooped a multimillion-pound front-end engineering and design (FEED) contract by bp for a new hydrogen pipeline network in the Teesside area.

Costain’s multi-disciplinary in-house engineering team will deliver the FEED to enable the construction for a new, 31km onshore pipeline distribution network that will deliver purified and dehydrated hydrogen from bp’s new hydrogen production facility to industrial end users. Costain is expected to complete the FEED project in 2025.

Operated by bp, as part of the East Coast Cluster, H2Teesside (H2T) is aiming to be one of the biggest blue hydrogen production facilities in the UK and will produce approximately 160,000 tonnes of low carbon hydrogen per annum. The blue hydrogen that H2T creates will ultimately displace natural gas consumption by industrial end users, establishing the hydrogen economy and enabling decarbonisation across the region.


Earlier this year, Costain successfully completed the FEED for the onshore CO2 pipeline and associated utilities and was recently selected by bp to continue the work to the next stage and oversee and manage the engineering, procurement and construction of the CO2  system. Detailed engineering design and preparatory works will commence later this year, subject to final investment decisions.

Sam White, managing director of natural resources at Costain, said: "This exciting project is a step change for UK decarbonisation. Our in-house engineering expertise will design a world-leading network that will safely transport hydrogen to provide industrial users with an alternative to natural gas, a key step in the development of the hydrogen economy.

"In addition to the environmental benefits, this is a project that will be transformative for Teesside and its people, creating jobs and developing skills throughout the region. In transportation, water, and energy, we’re committed to delivering critical infrastructure that improves lives and prosperity across the North-East of England."

In addition, Technip Energies has been selected by bp to deliver FEED for the H2Teesside hydrogen production site. This will include establishing the execution methodology, a robust schedule and project cost. It is expected to complete FEED in 2025.