Kellas Midstream, the independent energy infrastructure company based in Aberdeen, has marked a significant milestone with the commencement of front-end engineering design (FEED) work for its groundbreaking H2NorthEast hydrogen project in Teesside, United Kingdom.
The H2NorthEast initiative strategically unfolds in Teesside, an area deeply committed to becoming one of the world’s inaugural decarbonized industrial clusters. The project’s first phase entails the design and construction of a substantial 355MW hydrogen production facility and hydrogen distribution system. The project’s ambitions reach even higher, with the potential to scale up to over 1GW in a second phase by 2030, contributing a substantial share of up to 10% of the UK’s target hydrogen capacity.
In an impressive alliance, Kellas Midstream has announced partnerships with two prominent service companies, Worley and Johnson Matthey, for the FEED phase of H2NorthEast.
Worley, a global energy services provider, has secured the contract for Phase 1, where they will deliver a comprehensive FEED package over the next 15 months. This contract also extends the possibility of Worley providing Engineering, Procurement, and Construction (EPC) services post-FEED. They will further support pre-FEED and FEED activities associated with Phase 2, a testament to their involvement and commitment.
Johnson Matthey, renowned as a global leader in sustainable technologies, joins the project as the FEED technology partner through Worley. Their innovative LCH™ technology, known for its unmatched process efficiency in low carbon hydrogen production, will play a pivotal role. With over 95% carbon capture, it surpasses the rigorous standards of the UK Low Carbon Hydrogen Standard, positioning it as a world leader in sustainable hydrogen technology.
With the initiation of the front-end engineering design phase, Kellas Midstream inches closer to the anticipated final investment decision (FID) for H2NorthEast, slated for 2025. Commercial operations and the commencement of hydrogen production are set in the sights for 2028.
For Teesside, the H2NorthEast project represents a massive, cost-effective, and sustainable avenue for low carbon hydrogen production. It holds the potential to catalyze the regional economy by upskilling 90 existing jobs and creating over 100 new operational positions. The project is anticipated to inject an additional £200-300 million into the local economy while supporting the local supply chain.
