European Chemical Industry News & Insights

Hydrogen Production Milestone in Teesside

At a glance
  • The East Coast Cluster will remove up to 27 million tonnes of CO2, representing 50% of the UK's industrial cluster emissions.
  • H2NorthEast aims to be operational by the end of 2027, capturing around two million tonnes of CO2 per year.
  • The project will create up to 1,200 construction jobs and 400 operational jobs.
  • Blue hydrogen is the immediate solution, with green hydrogen as the ultimate goal.

Decarbonizing the UK Industry

The UK aims to achieve net zero emissions by 2050, with hydrogen identified as a crucial energy source in the Government’s 10-point plan. As part of the BEIS cluster application under the East Coast Cluster bid, a low carbon hydrogen production facility, H2NorthEast, is being developed.

East Coast Cluster

The East Coast Cluster, encompassing initiatives in Teesside and the Humber, is now confirmed as a Track One cluster, making it one of the first two carbon capture utilization and storage (CCUS) developments in the UK. This cluster will be the largest industrial decarbonization project in the UK, potentially removing up to 27 million tonnes of CO2, which represents 50% of the UK’s industrial cluster emissions.

Project Impact

The H2NorthEast project aims to be operational by the end of 2027. If highly utilized, it will capture around two million tonnes of CO2 per year. The project will create hundreds of construction roles over a three-year development period and long-term plant operation roles for at least 25 years. It is estimated to generate 100 direct operational jobs and up to 300 jobs in the supply chain once operational, with around 1,200 additional jobs during construction.

Hydrogen Strategy

The Government’s strategy suggests that 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based. Blue hydrogen, which is scalable, affordable, and available, is seen as the immediate solution, while green hydrogen, though more sustainable, is currently costlier and less available at large scale. The ultimate goal is to transition to green hydrogen as technology advances.

Future Prospects

The H2NorthEast project will be the first blue hydrogen production facility on Teesside, with an asset life of around 25 years. It will deliver low-carbon hydrogen to decarbonize industrial processes in the Teesside industrial cluster and potentially blend with natural gas into the NTS or NGN local network.