Tees Valley set for second major low carbon hydrogen project


Following the announcement that bp is aiming for 1GW of blue hydrogen production in the Tees Valley by 2030, a second project, targeting the same level, has been launched.

On 7 October, Kellas Midstream announced the development of H2NorthEast, a strategic initiative that will see a 1GW facility built, producing low carbon, blue hydrogen. This will use natural gas from the North Sea that has already been processed at the existing CATS Terminal – which Kellas owns and operates. Furthermore, more than 95% of the CO2 produced will be captured and then transported offshore for storage courtesy of infrastructure that has been developed by the Northern Endurance Partnership.

The ambition is for the project – which has had an application submitted as part of BEIS’ cluster application under the East Coast Cluster bid – to be operational by the end of 2027, saving more than 2mn tonnes of CO2 and creating around 400 long-term operational jobs. Around 1,200 jobs would be expected to be created during construction.