Engineering design work has begun on Kellas Midstream’s H2NorthEast hydrogen project on Teesside, with contracts dished out to Worley and Johnson Matthey.
The Aberdeen-based energy infrastructure operator confirmed on Monday that front-end engineering design (FEED) work had begun on the blue hydrogen scheme – a key linchpin in the East Coast Cluster decarbonisation project which secured government backing in 2021.
Based at the Central Area Transmission System (CATS) Terminal – which serves around 30 North Sea fields and handles around a quarter of the UK’s gas production – the project will produce hydrogen from gas, with carbon dioxide captured and stored offshore in the Northern Endurance reservoir.
Phase 1 of H2NorthEast involves the design and build of a 355-MW hydrogen production facility and distribution system, though a second phase could see this scaled to over 1GW by 2030, contributing up to 10% of the UK’s target hydrogen capacity.
Worley has been picked to deliver a full-scope FEED package for Phase 1 over the next 15 months.
The contract also includes options for Worley to deliver engineering, procurement and construction (EPC) work in the wake of design, as well as supporting pre-FEED and FEED activity associated with Phase 2 of the project.
Through Worley, Johnson Matthey has also been appointed as FEED technology partner, and will deploy its “LCH” technology to the project, which it says offers the “highest process efficiency commercially available today” for low-carbon hydrogen production, and carbon capture levels in excess of 95%.
Kellas said it had been working towards the “key milestone” of FEED awards since it was secured funding through the government’s Net Zero Hydrogen Fund in March.
A final investment decision (FID) for H2NorthEast is targeted for 2025, with commercial operation and first hydrogen production eyed for 2028.
Securing 190 jobs
Kellas CEO Nathan Morgan said the award marked an “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.”
Kellas has suggested the scheme’s potential to have a “major impact” on the region’s economy, with 90 existing jobs set to be upskilled and more than 100 new operational jobs created, adding additional £200-300 million to the local economy and supporting local supply chains.
Worley Senior VP for chemicals, fuels and Ross McPherson said: “We are excited about the opportunity to partner with Kellas on the FEED for H2NorthEast.
“We see real synergies between Kellas’ strong energy infrastructure credentials and our own track record in delivering engineering and design solutions that focus on technical integrity, safety in design, and sustainability.”
Johnson Matthey business development director Phil Ingram 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.”
Meanwhile a separate memorandum of understanding (MoU) with RWE would see the German generator work with Kellas to examine “gigawatt-scale” green hydrogen production in the region.
BP too has submitted a bid for government funding for its proposed large-scale green hydrogen production facility, HyGreen Teesside.
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