H2NorthEast, a leading carbon capture-enabled hydrogen production facility being developed in the heart of industrial Teesside, has signed a Memorandum of Understanding (MoU) with Northern Gas Networks (NGN), the gas distributor for the North of England, to pursue opportunities to provide low carbon hydrogen to industrial end users across North East England.

The agreement comes as H2NorthEast submits its application for Phase 1 of the project into the East Coast Cluster Teesside selection process. Launched by the Department for Energy Security and Net Zero (DESNZ) in February 2026, this is a process to identify projects that could connect to and utilize CO2 storage capacity in the planned Northern Endurance Partnership transportation and storage infrastructure by 2032, crucial to achieving net zero in Teesside, one of the UK’s most carbon intensive industrial regions.

H2NorthEast and NGN are both committed to reducing UK emissions, through the development of decarbonized power and industrial clusters enabled by carbon capture and storage (CCS), and low carbon hydrogen transportation networks.

The MoU creates an opportunity for low carbon hydrogen produced by H2NorthEast, to also be delivered beyond Teesside to a wider customer base, via the East Coast Hydrogen future hydrogen transportation network, in which NGN is a partner. It would help support large-scale industrial decarbonization for the UK through the supply of affordable low carbon hydrogen to energy-intensive industries, and H2NorthEast can bring significant economic benefits to Teesside including investment, jobs, skills development and supply chain opportunities.

Nathan Morgan, CEO of Kellas Midstream, one of the H2NorthEast project partners, said: “We are pleased to sign this MoU with NGN which marks an important step in ensuring that the low carbon hydrogen produced by H2NorthEast can decarbonize critical industries. It represents further progress in the creation of a fully integrated UK hydrogen value chain from production through to end use.”

Mark Horsley, CEO of Northern Gas Networks, said: “We are proud to collaborate with Kellas and support the H2NorthEast application into the East Coast Cluster selection process. Decarbonizing industry requires this type of strategic approach where hydrogen production and transportation can move forward together. Our agreement will be key to securing jobs and investment for the region, while accelerating the UK’s transition to a cleaner energy system.”