Uniper has signed an agreement with Shell to move forward with plans to produce blue hydrogen at the German-headquartered utility’s Killingholme power station site in the UK.

Dubbed Humber Hub Blue, the project includes plans for a blue hydrogen production facility at the site in Lincolnshire with a capacity to produce up to 720 megawatts using gas reformation technology with carbon capture and storage.

Shell and Uniper will now work on process design studies and site development, with a view to moving the project into front-end engineering and design next year, they said.

“The Humber Hub Blue project is a key part of Uniper’s hydrogen ambitions in the UK and we’re extremely pleased that Shell is joining us on this initiative,” said Uniper Hydrogen chief executive Axel Wietfeld.

David Bunch, chair of Shell UK, said: “We plan to invest up to £25 billion 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.”

The captured carbon would be fed through the proposed Zero Carbon Humber onshore pipeline, part of the East Coast Cluster, which was recently selected as one of two carbon capture and storage schemes to receive initial government support under the government’s cluster sequencing process.

The agreement follows a memorandum of understanding signed by both companies in 2021 to explore accelerating the development of a hydrogen economy in Europe.