bp Aberdeen Hydrogen Energy Limited, a joint venture between bp and Aberdeen City Council, has announced that the final investment decision for its Aberdeen Hydrogen Hub project has been agreed.

The planned hub will feature a hydrogen production, storage and distribution facility, located at Hareness Road, Aberdeen, which will be powered by electricity generated at a solar farm to be installed on the former Ness landfill site.

Dr Oliver Taylor, chief executive for bp Aberdeen Hydrogen Energy Limited, said: "This is an exciting milestone for the project, Aberdeen, and its people. Not only does the hydrogen hub support bp and Aberdeen City Council's shared ambition for the city's future, it also presents a growth opportunity for the region's supply chain and skills development."

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Aberdeen City Council co-leader Councillor Ian Yuill added: "This investment by the Council and bp is an important step towards the delivery of the Aberdeen Hydrogen Hub project. Aberdeen has been a leader among cities in bringing hydrogen to market for public transport and council fleet vehicles. This project is central to our vision to increase the supply and demand for hydrogen as a fuel in support of the city’s net zero vision."

bp Senior Vice President Europe, Louise Kingham, said: "Aberdeen City Council deserves a huge amount of credit for showing leadership as they progress their plans to deliver lower carbon energy solutions and, for bp, this is further evidence of how we are backing Britain by investing in support of today’s energy needs and those of tomorrow."

Following the decision, the joint venture intends to proceed towards commencement of construction activities, which are expected to begin before the end of 2024. Targeting production from 2026, once operational the hub will have the potential to deliver up to around 300 tonnes of green hydrogen a year through the initial phase of the project, enough to fuel 25 buses and a similar number of other fleet vehicles per day.