Tees Valley hydrogen projects selected for financing under £1 billion government fund

Following the Department for Business, Energy, and Industrial Strategy’s (BEIS) Phase-2 announcement of the Carbon Capture Usage and Storage Cluster (CCUS) Sequencing Process, the North East of England Process Industry Cluster (NEPIC) praised the North East’s leadership position on hydrogen.

Two large-scale blue hydrogen projects headquartered in Tees Valley are among the projects shortlisted for financing from the Government’s £1 billion CCS Infrastructure Fund (CIF).

The projects include Kellas Midstream’s H2NorthEast and bp’s H2Teesside, which are both part of The Northern Endurance Partnership’s East Coast Cluster.

As the only cluster in the UK to be shortlisted for two major blue hydrogen projects, in addition to the UK’s largest independently owned hydrogen production plant owned by BOC and several green hydrogen projects already underway across the region, the North East now has significantly more hydrogen projects than any other region in the UK.

Philip Aldridge, CEO at NEPIC said: “The BEIS Phase-2 announcement is excellent news for our region and really cements the North East as the hydrogen hub of the UK and a global ‘Super Place’ for hydrogen.”

“Almost half of the UK’s Carbon Capture Storage (CCS) projects are based in the North East, which demonstrates our commitment to lead on CCUS initiatives.

“Not only will this create thousands of jobs and attract investment across the local landscape, but this is also a huge step in the future distribution of low-carbon power that will be essential to the long-term sustainability of many businesses throughout the area.”

Chris Holt, clean growth manager at NEPIC added: “The Cluster Sequencing announcement highlights how clean growth is delivering for the North East in an unprecedented way and will provide exciting opportunities across our membership of over 300 companies.

“The news is timed perfectly to coincide with our Clean Growth Conference on Tuesday 20th September, where attendees will have the opportunity to hear from BOC, Sembcorp Energy UK and Kellas Midstream, both of whom were successful in the BEIS Phase-2 Cluster Sequencing Process.”