Kellas Midstream, an energy infrastructure company, and RWE, a German multinational energy company, have signed a memorandum of understanding to explore the potential for large-scale green hydrogen production in the Teesside industrial area of northeast England.
The project will be located close to emerging hydrogen infrastructure and aims to utilize the existing gas transportation and processing infrastructure on Teesside to create a new low-carbon economy.
The Teesside industrial area has been identified as one of the best locations in the UK for the development of hydrogen production and storage facilities due to its existing energy infrastructure and access to the sea. The site will be near Kellas’ H2NorthEast blue hydrogen project that will deliver more than 1 GW of low-carbon hydrogen.
The companies plan to investigate the feasibility of the project and the potential for utilizing the existing gas transportation and processing infrastructure on Teesside to store and distribute the hydrogen produced. The project will also aim to create new jobs and economic growth in the Teesside area.
RWE is targeting 2 GW of green hydrogen development across its core markets by 2030 and is assessing opportunities elsewhere in the UK such as potential green hydrogen plants at Pembroke, west Wales, Didcot in southern England, and Markinch in eastern Scotland.
The project is expected to contribute to the UK’s goal of reaching net-zero emissions by 2050 and help create a low-carbon economy. The UK government has set a target of producing 5 GW of low-carbon hydrogen by 2030 and is investing £500 million ($689 million) in hydrogen production and storage facilities.