Kellas welcomes DESNZ to CATS

We recently welcomed representatives from the Department for Energy Security and Net Zero (DESNZ) to our CATS terminal on Teesside. The visit played an important part in the review process for approval of £8.1m of funding that Government has committed from the Net Zero Hydrogen Fund (NZHF) towards Front End Engineering Design (FEED) work for our H2NorthEast blue hydrogen project that we are developing in partnership with SSE Thermal.

H2NorthEast has been selected as a key pathfinder project to ensure there is a pipeline of projects coming forward that will enable the UK’s net zero transition, following on from a major £22bn announcement from Government last month which committed to opening up the East Coast Cluster CCUS network and further expansion.

Working with our FEED delivery partner Worley and technology partner Johnson Matthey, the H2NorthEast team has been advancing the FEED study as a critical step towards realisation of H2NorthEast.

During the visit, we showcased our pioneering project which aims to produce up to a gigawatt of low carbon hydrogen on Teesside. H2NorthEast will be located next to, and integrated with, our existing CATS facilities. Overall, it is set to unlock over £2 billion of investment and contribute significantly to the UK’s hydrogen production capacity, representing 10% of the 2030 target.

H2NorthEast will not only reduce carbon emissions but also play a vital role in the energy transition by providing a sustainable and reliable source of hydrogen.

We extend our appreciation to DESNZ and Government for their ongoing support and commitment to our project. Their visit and the subsequent approval process underscore the importance of collaborative efforts in achieving our shared goals of energy security and sustainability.