It is also exploring the potential for developing green hydrogen in Oman, the company told Reuters, and is also looking into projects inBP's spending on low-carbon hydrogen remains modest but is expected to grow into the hundreds of millions by the end of the decade as projects gets under way, the company sources said.
Most hydrogen is currently used in oil refining and the fertilizer industry and is usually made by heating natural gas, a highly polluting process, known as grey hydrogen. It is also planning to boost its renewables power generation capacity to 50 gigawatt by 2030 which will be used in part to power electrolysers.
The low-carbon fuel will in a second phase be used by other heavy industries in the area to reduce some 36 million tonnes of CO2 emitted there every year. Subsidies will initially allow green and blue hydrogen to compete with grey hydrogen, allowing consumers to switch to cleaner fuel, McLeod said.
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