Slaughter and May advised Kellas Midstream in relation to the sale to SSE Thermal of a 50% interest in its H2NorthEast project, including the associated joint venture and services arrangements. H2NorthEast is a large-scale infrastructure project to build a 1GW CCUS-enabled blue hydrogen production facility next to Kellas’ CATS (Central Area Transmission System) gas transportation and processing terminal in Teeside. Currently in front end engineering design (FEED), Phase 1 of the project is targeted to be operational from 2028, delivering 355MW of low carbon hydrogen to local industry, with further phases increasing production to over a gigawatt.
Slaughter and May has been advising Kellas Midstream on the H2NorthEast project for over a year, including in relation to the FEED contract entered into earlier this year, the regulatory framework and its arrangements with offtakers (including heavy industry and power generation).