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BP and GE to Develop Hydrogen Power Plants and Technologies

Posted on July 20, 2006

BP and GE have announced their intention to jointly develop and deploy hydrogen power projects designed to dramatically reduce emissions of the greenhouse gas carbon dioxide from electricity generation. Vivienne Cox, BP's chief executive of gas, power and renewables, and David L. Calhoun, vice chairman of GE and president and CEO of GE Infrastructure, recently signed the agreement in London.

BP has already announced plans for two such hydrogen power projects with carbon capture and sequestration in Scotland and California, both of which will use GE technology. Subject to appropriate regulatory and fiscal regimes being in place, and necessary due diligence, the companies have an ambition to progress 10 to 15 further projects over the next decade, including the plants in Scotland and California. Subject to further exploration, the current expectation is that the most appropriate structure may be through creation of a joint venture to invest in hydrogen power projects and a joint development agreement for development of related technology. As a first step, BP and GE would jointly participate in the two hydrogen power projects with carbon capture and sequestration BP has announced - at Peterhead in Scotland and at Carson in Southern California where Scottish and Southern Energy and Edison Mission Energy are partners respectively.

In addition to the complementary nature of the technologies and experience of the two companies, the collaboration is expected to be further strengthened by the global reach of each of the partners. GE's operations in Houston and BP's operations in London will form the core groups for the hydrogen power collaboration.

The second project is a 500MW hydrogen power plant at Carson, southern California. BP, and partner Edison Mission Energy, would take petroleum coke, a refinery by-product and synthetic form of coal, to create the hydrogen. The plant will capture and store 4 million tonnes per annum of carbon dioxide which, like the Peterhead project, will enable incremental oil production. This project is scheduled to be complete in 2011.

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