Kellas Midstream, the Aberdeen-based energy infrastructure company, has started the next phase of work at its hydrogen project on Teesside.

The front end engineering design (FEED) work at the H2NorthEast hydrogen project in Teesside has been the next major goal 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.

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.

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Kellas says 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 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, 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.

Nathan Morgan, Kellas CEO, said: “This is another important step for H2NorthEast and the creation of low carbon energy sources on Teesside. The project will play a vital role in ensuring a sustainable future for this crucial industrial cluster. We look forward to working alongside Worley and Johnson Matthey and drawing on their world class expertise across the energy sector.”

Ross McPherson, Senior Vice President Chemicals, Fuels and Resources UNCE, Worley, said: “We are excited about the opportunity to partner with Kellas on the FEED for H2NorthEast. We see real synergies between Kellas’ strong energy infrastructure credentials and our own track record in delivering engineering and design solutions that focus on technical integrity, safety in design, and sustainability.”

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Phil Ingram, Business Development Director at Johnson Matthey, said: “With our leading technology bringing the highest process efficiency commercially available today to H2NorthEast, and by exceeding the UK’s Low Carbon Hydrogen Standard, this project will truly demonstrate the scale of innovation that is enabling Teesside to power ahead with the net zero transition.”

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.