Kellas Midstream Developing Low-Carbon Blue Hydrogen Hub in Teesside, UK
(P&GJ) — Kellas Midstream plans to utilize its existing natural gas assets at the Central Area Transmission System (CATS) Terminal in Teesside, United Kingdom, to develop a low-carbon blue hydrogen facility.
The project, called H2NorthEast, would require construction of a 1GW facility producing blue hydrogen utilizing UK North Sea natural gas which is transported to the CATS terminal by a 400 km (249 mi) pipeline. The terminal serves more than 30 producing fields in the Central Nord Sea and delivers more than 5 billion cubic meters of gas to UK markets each year.
More than 95% of the carbon dioxide (CO2) produced while making hydrogen will be captured and transported offshore for indefinite storage using infrastructure developed by the Northern Endurance Partnership, Kellas said.
“Kellas’ blue hydrogen facility H2NorthEast is a significant infrastructure project that will not only help decarbonize industry in Teesside, but will also create hundreds of construction roles over a three-year development period as well as long term plant operation roles for at least 25 years,” said Andy Hessell, Kellas Midstream’s managing director.
Kellas owns and operates midstream assets including the CATS Terminal and Pipeline on Teesside, which transports about 26% of the UK’s natural gas production on behalf of natural gas shippers. H2NorthEast is being developed in response to customer demand and is in line with the UK government’s strategy to create a hydrogen economy and would contribute 20% of the government’s target of 5GW of blue hydrogen capacity by 2030.
Kellas applied for H2NorthEast as part of BEIS’ cluster application under the East Coast Cluster bid. If successful, the East Coast Cluster – which groups decarbonization initiatives in Teesside and the Humber – will result in the largest industrial decarbonization project in the UK with up to 27 million tons of CO2 representing 50% of the UK’s industrial cluster carbon emissions, Kellas said.
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