Kellas Midstream begins FEED work on UK blue hydrogen project

Kellas Midstream, an Aberdeen-based energy infrastructure company, on October 2 announced that it had begun front-end engineering design (FEED) work on its H2NorthEast blue hydrogen project in Teesside.

Phase one 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 the second phase by 2030.

The project was 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.

Kellas is partnering with Australian engineering company Worley and London-based Johnson Matthey for H2NorthEast FEED.

Worley 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 pre-FEED and FEED activity associated with Phase two of the project. Johnson Matthey has been appointed through Worley as FEED technology partner.

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.

Teesside is a major industrial cluster in the UK. It is home to a number of heavy industries, such as steel, chemicals and power generation. These industries account for a significant proportion of the UK's industrial emissions.