Energy giant BP said it plans to invite engineering, procurement and construction (EPC) bids for a $2bn Hydrogen Power Abu Dhabi (HPAD) Project in Abu Dhabi.
The 400MW hydrogen power plant will be developed in association with Abu Dhabi's Masdar renewable energy initiative, and plans to cut greenhouse gas emissions.
The power plant, to be situated adjacent to the existing Shuweihat 1 power station, will capture up to 90% of the CO2
produced at the plant, reports the Wall Street Journal.
The EPC bids are scheduled for the first quarter of 2010 and contracts will be awarded by the third quarter of this year.
Hydrogen plants use fossil fuels and split them into hydrogen and CO2, of which the hydrogen is used to generate electricity, while the CO2 is captured and stored, thus reducing greenhouse emissions.
The 1.7 million tons a year of CO2 captured will then be injected in domestic oil fields to maintain pressure and boost crude production while remaining underground.
Abu Dhabi National Oil will supply natural gas to the plant and buy the CO2 separated from the gas.