Two major energy companies have joined forces to explore options to create a low-carbon hydrogen production hub in East Yorkshire.
Centrica and Equinor have signed a co-operation agreement to explore developing a hub at Easington, a move which would deliver a further boost to the region’s growing status as a hydrogen production leader. Under the plan, the Centrica-operated area at Easington could transition to a low carbon hydrogen production hub over the coming decade.
The move would support the Humber’s decarbonisation ambitions and help the UK meet its net zero goals and hydrogen production targets, while also creating new jobs and safeguarding existing roles at the historical gas terminal. Up to a third of the UK’s total gas supply currently enters the UK via Easington, much of it from Equinor’s Norwegian facilities. Easington is also based close to some of the world’s largest offshore wind farm developments, offering huge potential for both blue and green hydrogen production.
Read more: EY hails Northern offices' contribution to record revenue growth
The area is also earmarked as one of the landing points for the East Coast Cluster’s carbon capture pipeline, which would transport carbon dioxide for safe storage deep under the seabed. The Government recently doubled its 2030 hydrogen production ambition to 10GW capacity, with at least half coming from electrolytic ‘green’ hydrogen.
Equinor has ambitions to deliver nearly a fifth of the target by generating 1.8GW of hydrogen production within the Humber region by 2028, starting with its flagship H2H Saltend project. Centrica and Equinor expect the conversion of the Easington Terminal to produce an additional 1GW of low carbon hydrogen production, as well as around 200MW off-taker demand.
Grete Tveit, senior vice president for low carbon solutions at Equinor, said: “The Humber is in a unique position to lead the way on industrial decarbonisation, with Equinor’s Hydrogen to Humber (H2H) projects at the forefront of this transition. Partnering with Centrica to potentially develop a new hydrogen hub at one of the UK’s most significant industrial sites could help to transform this region’s energy mix whilst preserving and creating jobs and skills.”
Chris O’Shea, Centrica CEO, said: “We are delighted to be working in partnership with Equinor to explore opportunities to deliver on our commitments to help the UK transition to net zero as hydrogen will play a key role in achieving this. This exciting project builds on the long-standing partnership between Centrica and Equinor and follows on from our recent agreement to secure additional gas for our UK customers. Like Equinor, Centrica are committed to investing in the Humber region, levelling up and de-carbonising industry to create a world leading, green energy driven, economic hub.”
Mike Whitehead, president of the Hull and Humber Chamber of Commerce added: “It’s fantastic to see these two major energy companies seeking to invest and explore ground-breaking projects in this region, demonstrating our long-standing reputation as the UK’s Energy Estuary. Over the coming decades we will need the level of ambition shown by Centrica and Equinor to transition away from fossil fuels whilst creating jobs, boosting skills and attracting inward investment.”
READ NEXT:
40 new appointments on the Humber
Top 30 Under 30 back for 2023 in Hull and the Humber
Morrisons to close 132 McColls stores
Plans outlined for new entrance at Bradford transport interchange
