FEED work begins on blue hydrogen project on Teesside

Aberdeen-based energy infrastructure company Kellas Midstream has started front-end engineering design (FEED) work on its H2NorthEast hydrogen project in Teesside.

H2NorthEast is strategically located at the CATS (Central Area Transmission System) gas terminal on Teesside, an area committed to becoming one of the world’s first decarbonized industrial clusters.

The first phase of the project 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.

Following the funding secured through the Net Zero Hydrogen Fund in March this year, Kellas has now partnered with two service companies Worley and Johnson Matthey to kick off the FEED phase of the project.

Johnson Matthey has been appointed through Worley as a FEED technology partner, deploying its LCH technology that will provide process efficiency for low-carbon hydrogen production.

According to Kellas, moving into FEED brings closer the final investment decision (FID) for H2NorthEast targeted for 2025, and commercial operation and first hydrogen production targeted in 2028.

Nathan Morgan, Kellas CEO, 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.”

Ross McPherson, Senior Vice President Chemicals, Fuels and Resources UNCE, Worley, added: “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.”

Phil Ingram, Business Development Director at Johnson Matthey, stated: “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.”