Centrica and Equinor have signed an agreement to explore converting the Easington gas terminal into a 1GW hydrogen production hub over the next decade.
Up to one third of the UK’s total gas supply enters via the Centrica-operated terminal in East Yorkshire, much of it from Equinor’s Norwegian facilities.
The site is located close to some of the world’s largest offshore wind projects, which the companies say offers “huge potential” for both blue and green hydrogen production.
The area is also earmarked as one of the landing points for the East Coast Cluster’s carbon capture pipeline to transport CO2 for storage under the seabed and is considered a key location within the Zero Carbon Humber partnership.
It comes as the government eyes increasing hydrogen production to 10GW capacity by 2030, with at least half being produced via electrolysis.
Equinor meanwhile is aiming to deliver nearly a fifth of this national target by generating 1.8GW of hydrogen production within the Humber region by 2028, beginning with its H2H Saltend project.
By converting the terminal at Easington, both Centrica and Equinor say the site could produce an additional 1GW of low carbon hydrogen, coupled with around 200MW in off-taker demand.
The deal follows the recent announcement that Centrica has reopened the Rough gas storage facility after completing engineering upgrades over the summer and commissioning over early autumn.
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.”
Centrica chief executive Chris O’Shea 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.”