Costain has been awarded a "multimillion-pound" front-end engineering and design (FEED) contract by BP for a new hydrogen pipeline network on Teesside.

The company’s 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 year.

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.

Andy Lane, VP for hydrogen and carbon capture, use and storage (CCUS) at BP, UK, said: “These agreements mark further critical milestones for H2Teesside as the project continues to move towards EPC contracts and then construction.

“The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low carbon hydrogen economy.”