RWE teams up with Kellas Midstream for green hydrogen production

Energy companies RWE and Kellas Midstream have signed a memorandum of understanding (MoU) to explore the potential for large-scale green hydrogen production in Teesside, UK.

RWE said the hydrogen production site will be located close to emerging hydrogen infrastructure and will leverage each of the company’s leading positions in energy infrastructure and renewables.

To note, according to RWE, the Teesside area is committed to playing a vital role in helping the UK achieve its 2050 net zero ambitions by becoming one of the world’s first decarbonised industrial clusters through the production, consumption, and export of low-carbon hydrogen.

Kellas owns, manages, and operates a portfolio of energy infrastructure in the Central and Southern North Sea, including the CATS (Central Area Transmission System) gas terminal on Teesside. CATS is also the location for Kellas’ H2NorthEast blue hydrogen project which is expected to deliver over 1 GW of low-carbon hydrogen and contribute as much as 10% of the UK’s target hydrogen production by 2030.

RWE said it is also investigating hydrogen opportunities across the UK, including the potential development of green hydrogen plants at Pembroke, Didcot, and in Markinch near Fife. The company is already a part of the development of green hydrogen projects across Europe, including involvement in GET H2 and Hollandse Kust West. The company is targeting 2 GW of green hydrogen development in its core markets by 2030.

Nathan Morgan, Kellas CEO, said: “We are delighted to announce this partnership with RWE, an organisation that shares our drive and commitment to actively shape the future of the hydrogen economy and help our stakeholders achieve their net zero ambitions.”

“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.”

Sopna Sury, COO of Hydrogen, RWE Generation, commented: “This partnership with Kellas is an exciting development in RWE’s green hydrogen plans, with ambitions to invest £15 billion in the UK in suitable and cost-effective green energy projects by 2030.”

“Projects like the Teesside development will help the government achieve its target for 10 GW of low-carbon hydrogen production and play an essential role in the pathway to net zero, particularly in the hard-to-decarbonise industry. We are committed to playing a full part in the delivery of this emerging technology in the UK, and at the same time creating skilled green jobs.”

Tees Valley Mayor Ben Houchen said: “This is another big step forward for hydrogen production on Teesside. Our region already produces around half of the UK’s hydrogen and we’re on track to become one of the world’s first decarbonised industrial clusters by 2040.”

“It’s great to see that our growing hydrogen infrastructure is attracting yet more massive international companies that will drive forward the UK’s clean energy ambitions and, vitally, create good-quality, well-paid jobs for local people in the cleaner, safer, and healthier industries of the future.”

Recently, RWE’s other Europe ventures gained ground. Its pilot hydrogen plant project in Lingen, Germany, reached a new milestone with the arrival of the first electrolyser modules for generating hydrogen at the construction site at the Emsland gas-fired power station.