Major UK blue hydrogen project bids for CCS and H2 pipeline integration

Kellas Midstream and SSE Thermal’s H2NorthEast (H2NE) planned 1GW blue hydrogen project is looking to distribute gas through a regional pipeline network, after bidding to join a carbon capture and storage (CCS) programme.

Under a memorandum of understanding with gas operator Northern Gas Networks, H2NE-produced hydrogen could be supplied to industrial end-users through the UK-backed East Coast Cluster (ECC) Teesside’s planned hydrogen network.

ECC plans to deploy CCS technology across the Teesside region to decarbonise industrial applications.

H2NE has now bid to have carbon dioxide (CO2) captured from the first 355MW phase transported through the ECC network for storage in the North Sea.

Nathan Morgan, CEO of Kellas Midstream, said that H2NE’s inclusion in a fully integrated UK hydrogen value chain has the potential to aid decarbonisation in critical industries.

The H2NE project has been in the works for several years, with early-stage engineering starting back in 2023. UK catalyst firm Johnson Matthey had been selected to provide LCH carbon capture technology at the hydrogen plant.

Kellas Midstream initially intended for the full 1GW site to be operational by 2030.

However, the Northern Endurance Partnership CO2 Storage site is now only expected online in 2032, pushing back any potential blue hydrogen production.