Plans unveil world-leading carbon capture and hydrogen projects in the Humber

Equinor and SSE Thermal have unveiled plans to jointly develop two first-of-a-kind, low-carbon power stations in North Lincolnshire, comprising one of the UK’s first power stations with carbon capture and storage (CCS) technology, and the world’s first 100% hydrogen-fuelled power station.

The plans, underpinned by a new cooperation agreement between the two companies, would support the UK’s transition to net zero and accelerate the decarbonisation of the Humber, the UK’s largest and most carbon-intensive industrial cluster. The projects are said to have the potential to create thousands of skilled jobs and revitalise a key industrial heartland.

The two decarbonised power stations, which would form a ‘clean power hub’ near Scunthorpe, would be among the first in the world to utilise CCS and hydrogen technologies. Keadby 3 and Keadby Hydrogen would replace older, carbon-intensive generation on the electricity grid, providing flexible and efficient power to support intermittent renewable generation and maintain security of supply through the net zero transition.

The companies say the projects would also result in the Humber making a significant contribution to the UK’s 2030 targets for CCS and hydrogen. Keadby 3 could deliver 15% of the target for 10MT of carbon captured annually by 2030, while the demand from Keadby Hydrogen could account for a third of the 5GW hydrogen production goal.

Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy, said:

“The Humber region is at the heart of our commitment to tackle climate change and is already on the frontline of developing vital clean technologies which will change the way people’s homes and businesses are powered while slashing emissions. This new partnership will ensure that world-first technology is being developed in Scunthorpe and across the Humber, creating green jobs and bringing new investment which will benefit local communities and businesses – revitalising this industrial heartland as the UK builds back greener.”

Stephen Wheeler, Managing Director of SSE Thermal, said:

“We’re delighted to be announcing this agreement with Equinor through which we aim to develop these first-of-a-kind low-carbon power stations. These projects would play a major role in decarbonising the UK’s flexible generation capacity, while supporting a green economic recovery in the Humber. By utilising cutting-edge carbon capture and hydrogen solutions, we can decarbonise power generation, heavy industry and hard-to-reach sectors of the economy, which will be essential in both achieving net zero emissions and ensuring a just transition for workers and communities. With over 12 million tonnes of annual carbon emissions, ideal transport and storage options, and major energy and industrial companies working together, the Humber has to be at the centre of the UK’s decarbonisation strategy.”

Andrew Percy, MP for Brigg, Goole and the Isle of Axholme, said:

“This announcement shows SSE Thermal’s continued commitment to the area and this newly formed partnership with Equinor could see world-first technology brought to our region in the coming years, putting North Lincolnshire at the heart of the UK’s net zero transition. Climate change is a topic that is rightly at the top of the agenda and there is much we can do in the Humber to play our part in tackling it. Large-scale development and investment of this kind will bring both local employment and supply chain value, and I am committed to working closely with both SSE Thermal and Equinor to ensure these opportunities are realised for the region.”