UK-based construction and engineering company, Costain, has secured a multimillion-pound contract to design a new hydrogen pipeline network for BP in Teesside, England. 

The company will handle the front-end engineering and design (FEED) for a 31-kilometer onshore pipeline that will transport purified hydrogen from BP's planned hydrogen production facility to industrial customers.

“This is a project that will be transformative for Teesside and its people, creating jobs and developing skills throughout the region,” Sam White, Costain’s managing director of natural resources, said in a statement, adding it would be a “step change” for UK decarbonization.

BP’s H2 Teesside project aims to become one of the UK’s largest blue hydrogen production facilities, producing about 160,000 tons of low-carbon hydrogen annually intended to replace natural gas for industrial use. 

Technip Energies will also work on the project, handling FEED for the hydrogen production site itself.

Costain was selected based on its previous experience in the area, having completed FEED for an onshore carbon dioxide pipeline in the region. The company has also been selected by BP to oversee engineering, procurement, and construction of the CO2 system.

Costain expects to complete the FEED phase in 2025.