H2NorthEast is strategically located in Teesside, an area committed to becoming one of the world’s first decarbonized industrial clusters. Phase 1 of the project, Kellas said, involves the design and build of a 355 MW hydrogen production facility and hydrogen distribution system, with the potential to upscale to more than 1 GW in a second phase by 2030, contributing up to 10% of the UK’s target hydrogen capacity.

UK sustainable technologies group Johnson Matthey has been appointed as FEED technology partner through Australian multinational engineering contractor Worley. Johnson Matthey will deploy its LCH technology, which the company says offers the highest process efficiency currently available on the market for the production of low-carbon hydrogen, achieving a carbon capture rate of 95%, which is higher than the levels set by the UK Low Carbon Hydrogen Standard.

According to Kellas, the final investment decision (FID) for H2NorthEast is scheduled for 2025 and commercial operation and first hydrogen production for 2028.

Nathan Morgan, CEO of Kellas, said: “This is another important step for H2NorthEast and the creation of low carbon energy sources on Teesside. The project will play a vital role in ensuring a sustainable future for this crucial industrial cluster. We look forward to working alongside Worley and Johnson Matthey and drawing on their world class expertise across the energy sector.”

Phil Ingram, business development director at Johnson Matthey, added: “With our leading technology bringing the highest process efficiency commercially available today to H2NorthEast, and by exceeding the UK’s Low Carbon Hydrogen Standard, this project will truly demonstrate the scale of innovation that is enabling Teesside to power ahead with the net zero transition.”

The H2NorthEast project at Teeside is expected to upskill 90 existing jobs and create more than 100 new operational jobs, contributing an additional £200-300 million to the local economy and supporting local supply chain.