The German energy group RWE and the UK independent energy infrastructure company Kellas Midstream have decided to join forces to explore the potential for gigawatt-scale green hydrogen production in Teesside (north-eastern England, United Kingdom). The two companies have signed a Memorandum of Understanding to jointly progress opportunities for green hydrogen production in a phased development matched to customer demand.
Kellas owns and operates a portfolio of energy infrastructure in the Central and Southern North Sea, including its CATS (Central Area Transmission System) terminal on Teesside that transports and processes around a quarter of all UK gas production. CATS is also the location for Kellas’ H2NorthEast blue hydrogen project that will deliver over 1 GW of low carbon hydrogen and contribute as much as 10% of the UK’s target hydrogen production by 2030.
The UK aims to generate 5 GW of low carbon hydrogen production capacity by 2030.