H2NorthEast, UK

H2NorthEast is a planned 1GW carbon capture and storage (CCS)-enabled low carbon hydrogen production facility in the UK.

The project is being developed by a joint venture of SSE Thermal and energy infrastructure company Kellas Midstream. SSE acquired a 50% interest in H2NorthEast in December 2023.

Since its launch in October 2021, the scheme has passed a series of policy and technical milestones. It was then selected by the government in August 2022 to progress within the Track-1 CCUS cluster process and later secured support from the Net Zero Hydrogen Fund (NZHF).

In October 2023, Kellas Midstream began front end engineering design (FEED) work on blue hydrogen production facility. It was completed at the end of 2024.

H2NorthEast project was recognised as national significant in November 2024 by the UK Secretary of State.

Final Investment Decision (FID) for the project is targeted in 2025. The project targets initial operations from 2028.

In the first phase, it will deliver up to 355MW of blue hydrogen production capacity. Subsequent phases would lift total capacity to around 1GW.

Once delivered, the project will become part of the East Coast Cluster (ECC), a carbon capture and storage cluster in the UK comprising the Teesside and Humber industrial regions.

It will also support the UK Government’s goal of achieving 10GW of low-carbon hydrogen production by 2030, with up to 5GW potentially coming from blue hydrogen.

H2NorthEast Location

H2NorthEast will be located in Teesside, a key industrial hub in the north-east of England.

It will be situated on Seal Sands adjacent to Kellas’ Central Area Transmission System (CATS) gas terminal, within the boundaries of Stockton Borough Council and Redcar and Cleveland Borough Council.

The hydrogen distribution pipeline will connect the Hydrogen Production Facility to Cowpen Bewley in the west, spanning around 7km, and to Wilton in the east, covering about 10km.

Additionally, the three customer spur pipelines will have a combined length of around 2.6km.

Locating the plant next to the CATS terminal provides feedstock and utilities synergies, as well as brownfield land and a skilled operations workforce, which the developers cite as central to cost and schedule deliverability.

H2NorthEast Infrastructure

The proposed development will include a Hydrogen Production Facility (HPF), carbon dioxide capture and compression facilities with an export connection and hydrogen distribution trunk pipelines.

Key components of H2NorthEast will also include an air separation unit or oxygen supply pipeline, electricity grid connection, water supply and treatment, wastewater treatment and disposal, wastewater and effluent pipelines, along with other related infrastructure.

New hydrogen distribution trunk pipelines will link the site to local industrial customers, aiding in the decarbonisation of their operations.

The carbon dioxide generated and captured by the H2NorthEast facility will be exported via onshore pipelines through a connection to the Northern Endurance Partnership’s CO2 gathering, compression, and transportation pipeline infrastructure for permanent storage in the Southern North Sea.

The FEED study was undertaken using Johnson Matthey’s LCH technology, which is claimed to offer high process efficiency and more than 95% carbon capture.

Offtake Agreement

In November 2023, H2NorthEast signed non-binding Heads of Terms covering the potential supply of low-carbon hydrogen to Statera Energy’s Saltholme power stations in Teesside.

Statera has two flexible generation power stations at Saltholme, located near CATS. These sites supply flexible electricity to the grid, addressing shortfalls in renewable generation and spikes in demand in the UK energy system.

Statera intends to use hydrogen from H2NorthEast to transition from natural gas, aiming to convert its sites into the first low-carbon flexible generation facilities.

Contractors Involved

Kellas awarded a full-scope FEED contract for Phase 1 to Worley in October 2023. The award included options for Worley to deliver Engineering, Procurement and Construction (EPC) following FEED, and to support pre-FEED/FEED activities for Phase 2.

Johnson Matthey is the FEED technology partner, providing its LCH reforming and capture solution.