H2NorthEast, a carbon capture-enabled hydrogen production facility being developed in Teesside, has signed a memorandum of understanding with Northern Gas Networks, 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 H2NorthEast project is a partnership between Kellas Midstream and SSE to build a 1GW carbon capture enabled hydrogen production facility on Teesside adjacent to the CATS (Central Area Transmission System) gas terminal. Since its launch in 2021, H2NorthEast has progressed through initial Track 1 shortlisting, Net Zero Hydrogen Fund success, and front-end engineering and design (FEED) completion.

The agreement comes as H2NorthEast submits its application for Phase 1 of the project into the East Coast Cluster Teesside selection process. Launched by DESNZ in February 2026, the process identified projects that could connect to and utilise carbon storage capacity in the planned Northern Endurance Partnership transportation and storage infrastructure by 2032.

The agreement 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.

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