Teesside, a hub for industrial innovation, is set to witness a collaboration between energy infrastructure company Kellas Midstream and flexible energy solutions developer Statera Energy.
The signing of a Heads of Terms agreement marks a significant milestone for the H2NorthEast project, introducing low carbon hydrogen to power Statera’s Saltholme stations, and potentially revolutionizing the UK’s energy landscape.
The collaboration between Kellas Midstream and Statera Energy revolves around the ambitious H2NorthEast project. The primary goal is to establish a low carbon, carbon capture, utilization, and storage (CCUS)-enabled blue hydrogen facility adjacent to Kellas’ CATS gas processing terminal in Teesside. This facility is slated to deliver an initial 355MW of hydrogen in its first phase, with plans to scale up to over a gigawatt by 2030, making a substantial contribution to the UK’s hydrogen capacity targets.
At the heart of H2NorthEast’s innovation is the utilization of blue hydrogen technology. This involves the reforming of natural gas, with carbon capture technology in place to mitigate and manage carbon emissions. The project aims to pioneer a new era of hydrogen production that aligns with carbon reduction goals, making it a key player in the transition to a sustainable energy future.
Statera Energy, known for its flexible generation power stations at Saltholme, stands to benefit significantly from the agreement. The hydrogen supplied by H2NorthEast is earmarked to facilitate a transition away from natural gas, positioning Statera’s sites as the first low carbon flexible generation facilities in the UK. This shift is pivotal in supporting the broader objective of achieving a fully decarbonized power system.
