Kellas Midstream enters FEED for its H2NorthEast hydrogen project on Teesside
Kellas Midstream, the Aberdeen-based independent energy infrastructure company, has started front end engineering design (FEED) work on its H2NorthEast hydrogen project in Teesside. The project has been working towards this key milestone since it was successfully awarded funding in March this year through the Net Zero Hydrogen Fund, a UK government initiative to support the commercial deployment of low carbon hydrogen projects.
H2NorthEast is strategically located in Teesside, an area committed to becoming one of the world’s first decarbonized industrial clusters.
Phase 1 of the project involves the design and build of a 355MW hydrogen production facility and hydrogen distribution system, with the potential to upscale to more than 1GW in a second phase by 2030, contributing up to 10% of the UK’s target hydrogen capacity.
Kellas announced it is partnering with Worley and Johnson Matthey, two leading service companies, for H2NorthEast FEED.
It has awarded the contract for Phase 1 to global energy services provider, Worley, who will deliver a full-scope FEED package over the next 15 months. The contract also includes options for Worley to deliver Engineering, Procurement and Construction (EPC) following FEED, as well as supporting pre-FEED and FEED activity associated with Phase 2 of the project.
Johnson Matthey, the global leader in sustainable technologies, has been appointed through Worley as FEED technology partner, deploying its leading LCH™ technology that will provide the highest process efficiency commercially available today for low carbon hydrogen production, and with >95% carbon capture, it is higher than the levels set in the UK Low Carbon Hydrogen Standard, the most stringent in the world.
Moving into front end engineering design brings Kellas a step closer to final investment decision (FID) for H2NorthEast targeted for 2025, and commercial operation and first hydrogen production targeted in 2028.
For Teesside, H2NorthEast offers a large-scale, cost-effective and sustainable way to deliver low carbon hydrogen, with the potential to have a major impact on the region’s economy. The project is expected to upskill 90 existing jobs and create more than 100 new operational jobs, contributing an additional £200-300 million to the local economy and supporting local supply chain.
