One of the key players putting Teesside at the centre of the Government's national Net Zero strategy has committed itself to helping provide hundreds of new jobs in the region.

Energy infrastructure company Kellas Midstream welcomed the Government’s announcement that the East Coast Cluster has been selected as one of the first CCUS clusters to be developed in the UK.

It sauisd the movfe it supports its H2NorthEast project which will create low carbon hydrogen production in Teesside and create around 1,200 jobs during construction and 400 more once it is operational.

Managing Director Andy Hessell said, “The government support for the East Coast Cluster reflects the opportunity and capability that exists within the Teesside & Humber regions, with new and highly credible projects such as H2NorthEast bringing substantial regional economic benefits and hundreds of new jobs.

"The decision to advance the East Coast Cluster onto Track 1 of Cluster Sequencing highlights the strength of the cluster and supports the development of key decarbonisation projects such as H2NorthEast.

Read more: Government chooses Teesside to lead green energy revolution

"Kellas is committed to investing in the North East region and developing hydrogen production in Teesside. Supporting the East Coast Cluster is key to decarbonising energy infrastructure, and we firmly believe that the time to invest is now. 

"Moving on to the next stage of the cluster sequencing process, Kellas is preparing the submission for our H2NorthEast project.

"This will create a low carbon hydrogen facility that will significantly reduce carbon emissions both locally and nationally.

"We will do this by using the strength of our existing assets and the knowledge, experience and determination of our teams, together with the support of our owners BlackRock & GIC.

"The availability of low carbon hydrogen will create new employment opportunities, safeguard jobs, both on and offshore, and strengthen the UK’s home-grown low carbon energy supply chain.

"We celebrate the government’s decision and will continue to work with local industry and key stakeholders to ensure that H2NorthEast is successful in the next stage of cluster sequencing, so that we can deliver the environmental and economic benefits of the project to the Tees Valley as quickly as possible."

Mark Florian, MD, Head of BlackRock’s Global Energy and Power Infrastructure platform added: “We are pleased the UK government has announced it will fast-track the East Coast Cluster that includes Kellas Midstream’s H2NorthEast project.

"Blue hydrogen is a key component in creating the hydrogen economy and reducing global carbon dioxide emissions, and we look forward to supporting this important project with the Kellas Midstream team.”

And Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC said: "We believe blue hydrogen will have a key role to play in enabling the decarbonisation of industry, especially in hard to abate sectors. As a shareholder of Kellas, we are very pleased to support the company."


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