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Centrica and Equinor have agreed to explore developing a low-carbon hydrogen production hub at Easington in East Yorkshire, UK, to further decarbonise the carbon-intensive Humber region.

The goal of the agreement is for the Centrica-operated plant at the Easington gas terminal to transition to a low-carbon hydrogen production hub over the coming decade.

Mike Whitehead, president of the Hull & 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 this level of ambition to transition away from fossil fuels whilst creating jobs, boosting skills and attracting inward investment.”

The area is situated close to several offshore wind farm developments, offering huge potential for both blue and green hydrogen production.

Also, the area is also earmarked as one of the landing points for the East Coast Cluster’s carbon capture pipeline, which would transport CO2 for safe storage deep under the seabed.

As such, it is a key location within the Zero Carbon Humber partnership which is planned to provide regional hydrogen and CO2 pipelines between the area’s major energy producers and carbon-intensive industries.

Centrica and Equinor expect that the conversion of the Easington Terminal could produce an additional 1GW of low carbon hydrogen production coupled with the around 200MW off-taker demand.

Grete Tveit, senior vice president for Low Carbon Solutions at Equinor, said: “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.”