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HYDROGEN VILLAGE PROPOSAL TO BRING OVER £300 MILLION AND 300 NEW JOBS TO REDCAR AND TEES VALLEY

  • New analysis shows the Redcar Hydrogen Village, could bring over £300 million of investment and at least 300 jobs to the local area
  • Proposal would see around 2,000 homes and businesses in Redcar covert from natural gas to hydrogen, to demonstrate its use and inform Government decisions on reaching net zero
  • Participants also to receive free, brand new hydrogen appliances, energy efficiency upgrades for their homes and participation vouchers for feedback

Redcar Hydrogen Village would bring over £300 million of investment and at least 300 new jobs to Redcar and the Tees Valley, according to new analysis by Northern Gas Networks (NGN).

The implementation of the proposed Redcar Hydrogen Village, is expected to bring significant investment to the historically underfunded region over the next ten years – as well as hundreds of high-quality jobs such as hydrogen engineers, project managers and customer service representatives.

NGN’s proposal for the UK’s first ‘Hydrogen Village’ would see around 2,000 homes and businesses in the Redcar area converting from natural gas to hydrogen or an electric alternative. The Government-led project is in response to the UK’s legal obligation to reach net zero carbon emissions by 2050 – collecting vital data on the use of hydrogen as a low-carbon alternative to natural gas for home heating and industry, and demonstrating how a large area can be converted with minimal disruption to residents.

As well as benefits to the wider area, the project is expected to benefit locals too, with all those involved in the project receiving new hydrogen appliances, free of charge and with free regular servicing and maintenance. Each home will also be eligible for up to £2,000 in energy efficiency measures like insulation, ensuring participants receive lasting benefits, and people can provide feedback on their experiences in exchange for participation vouchers.

Mark Horsley, Chief Executive of NGN, said:

“We’re stepping up to help the Government find a route to net zero that works – tackling climate change while ensuring people’s homes are kept warm and the lights are kept on.

“Hydrogen has already been used across the world and in the UK for decades, and as a low carbon option that gives all of the familiarity and comfort of gas, it has a major role to play as part of the net zero solution.

“How it benefits the local community is a priority, and we are delighted by the investment and jobs it will bring to the resident of Redcar over the next few years.”

Jacob Young, MP for Redcar and Cleveland, said:

“The benefits of a hydrogen industry here in Redcar are huge – with investment injected back into the businesses and communities we know and love, as well as hundreds of potential jobs for friends, families, and colleagues.

“Redcar has long been known for its strong industrial roots and this project presents a fantastic opportunity for our proud area to lead the country in the green revolution.”

Hydrogen can be created here in the UK and stored, ready to be used during peak demand for energy – and Redcar was chosen by NGN due to plans to produce green hydrogen locally. Hydrogen can be pumped through existing gas pipes, with limited disruption and additional cost.

Using hydrogen for heat retains choice for customer and offers an option to those who are unable to electrify, either due to financial or space constraints.

More generally, the Government has highlighted that the hydrogen economy could be worth £900 million by 2030 and create over 9,000 jobs across the whole of the UK.

Notes to editors:

  • The Gross Value Added (GVA) impact was estimated using the latest forecast of lifetime spend for the project with a conservative economic multiplier of 1.75 based on New Economics Foundation LM3 Modelling. Assuming 85% of this would benefit the Tees Valley with the remainder benefiting the UK – resulting in a Tees Valley GVA impact of approximately £300 million over ten years.
  • For jobs, this was calculated using the North East Local Enterprise Partnership modelling which links GVA impact to jobs created. Even using the most conservative utilities ratio, a £300m GVA impact suggests job a creation of approximately 1,200. With a conservative 75% deadweight, this resulted in 300 expected new good quality jobs for the area that are likely to endure. As above, this represents a minimum impact and that further job creation is likely due to leveraged opportunities.
  • bp’s HyGreen Teesside will supply NGN with green hydrogen.
  • The above does not include GVA and jobs from:
    • NGN Cannon Park recruitment and training of hydrogen competencies.
    • Redcar and Cleveland College hydrogen training facilities and potential Department for Education Funding opportunities (unique in UK).
    • Further leveraged investment opportunities for local industry and domestically from hydrogen.

-ENDS –