BP plans U.K.'s largest blue hydrogen production site

  • BP says it aims to build the U.K.'s largest hydrogen plant by 2030, further expanding its commitment to low-carbon energy as it slims down its traditional oil business.
  • BP says the H2Teesside facility in northeast England will have a capacity of as much as 1 GW of "blue hydrogen" - 20% of the U.K. government's target - by 2030 and would capture and store 2M tons/year of carbon dioxide.
  • Blue hydrogen is produced by converting natural gas into hydrogen and carbon dioxide, which is then captured and permanently stored.
  • "Blue hydrogen, integrated with carbon capture and storage, can provide the scale and reliability needed by industrial processes," says Dev Sanyal, BP 's executive VP of gas and low-carbon energy, adding that it can also play an essential role in decarbonizing hard-to-electrify industries.
  • If the project moves forward, BP expects to take a final investment decision in 2024, and production could begin by 2027.
  • BP plans to cut its oil and gas production by 40% and raise annual low-carbon spending to $5B, an energy transition strategy that CEO Bernard Looney says has not yet convinced investors.

    Investors in BP can expect a huge dividend payment. Based on the recent analysts' consensus the stock now has one of the highest dividend returns of the English market. Per share the analysts expect a dividend of 21 GBp per share. The dividend yield is then 6.96 percent. The average dividend yield of the oil & gas producers is a limited 1.21 percent.

    Historical dividend returns BP

    Over the current book year the total revenue will be 243 billion GBp (consensus estimates). This is rather significant more than 2020's revenue of 180.37 billion GBp.

    Historical revenues and results BP plus estimates 2020

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    The analysts expect for 2021 a net profit of 6.96 billion GBp. The majority of the analysts expects for this year a profit per share of 34 GBp. The PE-ratio therefore is 8.87.

    Latest estimates around 368 GBp

    The latest 3 recommendations for the oil & gas producer were provided by UBS , JP Morgan and HSBC .

    BP 's market capitalization is based on the number of outstanding shares around 6103.07 billion GBp. The BP stock was the past 12 months quite volatile. Since last March the stock is 4 percent lower. This year the stock price moved between 189 and 377 GBp.

    Historical stock prices BP period 2007-2021

    stock bp

    Click here for dividend BP. At 17.38 the stock trades 2.6 percent lower at 301.55 GBp.

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