Uniper and Shell are to work together to develop hydrogen production at scale in North Killingholme.
The energy giants have signed an agreement to progress multi-million pound plans at the gas-fired power station Uniper owns and operates, with a desire to play a key role in the cleaning up of heavy industry.
The low carbon production could also be used to decarbonise transport, heating and power in the Humber region and beyond, creating hundreds of jobs and helping safeguard thousands, and follows plans from Equinor at Saltend, on the North Bank.
Read more: Green jet fuel takes off for British Airways as first supplies received from Humber refinery
Humber Hub Blue would have a capacity of up to 720MW, and use gas reformation technology with carbon capture and storage, tapping into the Zero Carbon Humber onshore pipeline proposal - a leading project in the government’s cluster roll-out.
The agreement follows a memorandum of understanding signed by both companies in 2021 to explore accelerating the development of a hydrogen economy in Europe, and just days after the production target was doubled to 10GW by 2030 as part of the UK's Energy Security Strategy.
Shell and Uniper will now jointly progress process design studies and site development activity, with a view to taking the project to front end engineering and design by 2023.
“The Humber Hub Blue hydrogen project is a key part of Uniper’s hydrogen ambitions in the UK and we’re extremely pleased that Shell is joining us on this initiative,” said Axel Wietfeld, chief executive of Uniper Hydrogen.
“The development of a hydrogen production hub at Killingholme represents a significant step towards decarbonising the UK’s largest industrial cluster,” added Mike Lockett, Uniper’s UK country chairman and chief commercial officer for power. “Future proofing the industry, this investment has the potential to secure and grow the region’s economy.”
One of several projects to recently pass eligibility tests in Whitehall, successful proposals will be shortlisted from next month.
Final investment decisions could be taken in 2024, with a view to being operational by 2027.
David Bunch, Shell UK’s country chair, said: “Shell is ready to play our part in ensuring an orderly transition to net zero while bolstering the UK’s energy security.
“We plan to invest up to £25 billion in the UK energy system over the next decade subject to board approval, and more than 75 per cent of this is for low and zero-carbon technology. “Hydrogen and CCS will be key to these plans. They can also help stimulate economic growth and jobs. That is why it is critical that both government and industry continue to work together to drive change.”
The project could see the capture of around 1.6 million tonnes of carbon a year through CCS. The UK Government has set a target to capture 10 million tonnes annually by 2030.
While the focus is on gas, the former E.on site - Uniper is a 2016 spin-off with the stake then sold off two years later - sits next to Orsted's onshore substations for its giant Hornsea offshore wind farms, with electrical offtake proposed for green hydrogen production as part of the Gigastack project with ITM Power and neighbouring Phillips 66.
Uniper is also continuing to develop a green hydrogen project, while also heading towards close on Project Mayflower's feasibility study - looking at the cleaning up of Port of Immingham operations as part of the Department for Transport’s Clean Maritime Demonstration Competition.
Clean Growth Minister Greg Hands has welcomed the agreement. He said: “We’ve set ambitious targets for hydrogen production in our British Energy Security Strategy and are investing £360 million in innovative energy technologies to get us there. Today’s announcement shows real confidence in hydrogen - creating high-quality jobs to level up the Humberside region, based on this clean, cutting-edge new super fuel.”
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