UK-based energy infrastructure company Kellas Midstream and RWE, the country's largest power generator, have entered a partnership to explore the potential for large-scale green hydrogen production in Teesside, which is committed to helping the UK achieve its net-zero targets by becoming one of the world's first decarbonized industrial clusters through the use of low-carbon hydrogen.
The two companies have signed a memorandum of understanding to explore opportunities for gigawatt-scale green hydrogen production in Teesside, which will be developed in phases based on customer demand. The hydrogen production site will be located near emerging hydrogen infrastructure and will make use of both companies' positions in energy infrastructure and renewables.
“Hydrogen has a crucial role to play in achieving net-zero and is an essential component to decarbonize industry. Teesside is the perfect location to deliver the green hydrogen development as it is close to the industry that needs to decarbonize and a growing offshore wind pipeline,” said a spokesperson from Kellas.
Kellas owns and operates a portfolio of critical energy infrastructure in the North Sea, including its Central Area Transmission System terminal on Teesside that processes around a quarter of the UK's gas production. It is also developing the H2NorthEast blue hydrogen project, which is expected to deliver over 1 GW of low-carbon hydrogen and contribute as much as 10% of the UK's target hydrogen production by 2030.
RWE is actively investigating hydrogen opportunities across the UK, including the potential development of green hydrogen plants in Pembroke, Didcot, and Markinch near Fife. The company has experience in developing green hydrogen projects across Europe, including its involvement in GET H2 and Hollandse Kust West. The company is aiming to develop 2 GW of green hydrogen by 2030.
“We are committed to playing a full part in the delivery of this emerging technology in the UK and, at the same time, creating skilled green jobs,” said Sopna Sury, COO Hydrogen, RWE Generation.
The partnership between Kellas and RWE is a significant step towards green hydrogen production in the UK and will contribute to the country's goal of producing 10 GW of low-carbon hydrogen by 2030. It will also create well-paying jobs for local people in the clean energy industry.
Tees Valley Mayor Ben Houchen said, “It's great to see that our growing hydrogen infrastructure is attracting yet more massive international companies that will drive forward the UK's clean energy ambitions and – vitally – create good-quality, well-paid jobs for local people in the cleaner, safer and healthier industries of the future.”
Nathan Morgan, CEO of Kellas, said, “There are real synergies between green hydrogen production and our core energy infrastructure activity, and we aim to leverage our leading position on Teesside, through our CATS facility and emerging blue hydrogen activity, as part of our collaboration with RWE.”
