Kellas Midstream and RWE are assessing plans to launch a “gigawatt-scale” green hydrogen production facility on Teesside. The collaboration aims to leverage existing infrastructure and contribute to the UK’s target hydrogen production by 2030. The project is expected to attract further investment in green energy, create skilled green jobs, and help the government achieve its net-zero ambitions.
Two energy companies, Kellas Midstream and German firm RWE, have announced plans to collaborate on a “gigawatt-scale” green hydrogen production facility on Teesside. This region’s proximity to offshore wind sources and its cluster of heavy industries requiring decarbonisation make it an ideal location for such an initiative. The companies aim to leverage their existing infrastructure, including Kellas’ H2NorthEast blue hydrogen project, to contribute up to 10% of the UK’s target hydrogen production by 2030.
Teesside is already home to energy giant BP’s H2Teesside blue hydrogen project and its HyGreen Teesside project, which aims to produce around 60MWe of green hydrogen by 2025. The partnership between Kellas and RWE is expected to attract further investment in green energy projects, with RWE committing to investing £15bn in the UK by 2030.
Sopna Sury, RWE’s chief operating officer hydrogen, said the Teesside project would help the government reach its target of producing 10GW of low-carbon hydrogen and play an essential role in achieving net-zero emissions, particularly in hard-to-decarbonise industries. The development of green hydrogen on Teesside is expected to create skilled green jobs, a point that was highlighted by Tees Valley mayor Ben Houchen. He praised the initiative, saying that the region already produces around half of the UK’s hydrogen and is on track to become one of the world’s first decarbonized industrial clusters by 2040.