Shell and Uniper plan blue hydrogen facility in UK

SHELL and Uniper have signed an agreement for a blue hydrogen production facility in in North Lincolnshire, UK.

The companies plan to produce blue hydrogen (hydrogen from natural gas with carbon capture) at Uniper’s Killingholme power station. Known as the Humber Hub Blue Project, it will have a production capacity of up to 720 MW with the potential to capture 1.6m t/y of CO2. The captured CO2 will be piped though the proposed Zero Carbon Humber onshore pipeline. This is part of the East Coast Cluster, which is one of two CCUS industrial clusters to receive Government backing last year.

Mike Lockett, Uniper UK Country Chairman, said: “The development of a hydrogen production hub at Killingholme represents a significant step towards decarbonising the UK’s largest industrial cluster. Future proofing the industry, this investment has the potential to secure and grow the region’s economy”

David Bunch, Country Chair of Shell UK, 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 £25bn [US$33bn] in the UK energy system over the next decade, subject to Board approval, and more than 75% 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.”

Shell and Uniper will now initiate process design studies and site development activities, with an aim to progress the project to front-end engineering and design (FEED) by next year.