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Two major energy companies have joined forces to explore options to create a low-carbon hydrogen production hub in East Yorkshire.

Centrica and Equinor have signed a co-operation agreement to explore developing a hub at Easington, a move which would deliver a further boost to the region’s growing status as a hydrogen production leader. Under the plan, the Centrica-operated area at Easington could transition to a low carbon hydrogen production hub over the coming decade.

The move would support the Humber’s decarbonisation ambitions and help the º£½ÇÊÓƵ meet its net zero goals and hydrogen production targets, while also creating new jobs and safeguarding existing roles at the historical gas terminal. Up to a third of the º£½ÇÊÓƵ’s total gas supply currently enters the º£½ÇÊÓƵ via Easington, much of it from Equinor’s Norwegian facilities. Easington is also based close to some of the world’s largest offshore wind farm developments, offering huge potential for both blue and green hydrogen production.

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The area is also earmarked as one of the landing points for the East Coast Cluster’s carbon capture pipeline, which would transport carbon dioxide for safe storage deep under the seabed. The Government recently doubled its 2030 hydrogen production ambition to 10GW capacity, with at least half coming from electrolytic ‘green’ hydrogen.

Equinor has ambitions to deliver nearly a fifth of the target by generating 1.8GW of hydrogen production within the Humber region by 2028, starting with its flagship H2H Saltend project. Centrica and Equinor expect the conversion of the Easington Terminal to produce an additional 1GW of low carbon hydrogen production, as well as around 200MW off-taker demand.

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 º£½ÇÊÓƵ’s most significant industrial sites could help to transform this region’s energy mix whilst preserving and creating jobs and skills.”

Chris O’Shea, Centrica CEO, said: “We are delighted to be working in partnership with Equinor to explore opportunities to deliver on our commitments to help the º£½ÇÊÓƵ 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 º£½ÇÊÓƵ 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.”