Teesside Hydrogen Project: H2NorthEast Submits Bid into East Coast Cluster Selection Process & Establishes Strategic Partnership with Northern Gas Networks
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 Northeast 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 utilise 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.
“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 decarbonise critical industries. It represents further progress in the creation of a fully integrated UK hydrogen value chain from production through to end use.”
Nathan Morgan, CEO of Kellas Midstream
“We are proud to collaborate with Kellas and support the H2NorthEast application into the East Coast Cluster selection process. Decarbonising 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.”
Mark Horsley, CEO of Northern Gas Networks
Kellas Midstream | Leading Midstream Excellence
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