Germany’s RWE and UK-based Kellas Midstream have signed a memorandum of understanding to develop gigawatt-scale hydrogen production in Teesside over multiple phases.

Kellas owns and operates the Central Area Transmission System (Cats) terminal in the region, which transports and processes c.25pc of all UK gas production. The company is also developing near the terminal the 1GW H2Northeast blue hydrogen project, the first 355MW phase of which is due to start operations by October 2027.

£15bn – Planned RWE investment into UK green energy by 2030

“There are real synergies between green hydrogen production and our core energy infrastructure activity, and we aim to leverage our leading position on Teesside, through our Cats facility and emerging blue hydrogen activity, as part of our collaboration with RWE,” says Kellas CEO Nathan Morgan.

RWE targets 2GW of green hydrogen across its core markets by 2030, as well as £15bn ($18.6bn) in investment towards wider green energy projects in the UK by that year. The company received a grant from the UK government to progress Feed on a planned electrolyser at Didcot and is also exploring potential projects in Pembroke and Fife.

 

 

---

Author: Polly Martin