H2NorthEast and Northern Gas Networks Partner to Develop Teesside Hydrogen Production and Distribution

H2NorthEast, a low-carbon hydrogen project led by Kellas Midstream and SSE Thermal, has signed a memorandum of understanding with Northern Gas Networks on April 14, 2026, to explore hydrogen distribution from a planned Teesside facility through the East Coast Hydrogen pipeline network.

The project centers on a steam methane reforming facility paired with carbon capture and storage (CCS) to produce low-carbon hydrogen. Once operational, the facility is designed to supply approximately 1GW of capacity, equivalent to roughly 10% of the UK's 10GW hydrogen capacity target by 2030.

Northern Gas Networks will leverage its pipeline expertise to route hydrogen from the Teesside plant, located adjacent to the CATS gas terminal, to industrial customers including steelmakers and chemical plants across County Durham and beyond. The partnership will evaluate converting existing pipelines or constructing new hydrogen-ready infrastructure to ensure safe and reliable hydrogen delivery.

Engineering work on H2NorthEast began in 2023. The project is positioned within the East Coast Cluster, the UK government's industrial decarbonization initiative that combines hydrogen production, carbon capture, and storage infrastructure. Initial hydrogen production is targeted for the mid-2020s, with gradual capacity expansion through the decade contingent on cluster funding and market demand.

Next steps include feasibility studies, route surveys, material assessments, and customer outreach to identify industrial demand profiles and on-site infrastructure requirements.

Originally reported by Hydrogen Fuel News. Read the full article →