Centrica and hydrogen producer Lhyfe have teamed up to develop offshore renewable green hydrogen in the UK, marking a first for the country.

A Memorandum of Understanding has been signed, which the groups believe could accelerate the use of green hydrogen as part of the UK’s energy transition.

Under the agreement, the companies will collaborate on a pilot green hydrogen production site in the Southern North Sea, combining Lhyfe’s expertise in green hydrogen production with Centrica’s experience of gas storage and infrastructure.

The aim is to prove that an end-to-end hydrogen production, storage and distribution system is possible in the country.

The firms will also explore a partnership to deploy the technology at a commercial scale alongside offshore wind electricity production, with renewable green hydrogen and offshore wind power expected to play a crucial role in the UK’s energy mix in the coming years.

Martin Scargill, Managing Director of Centrica Storage, said that the pilot will demonstrate how green hydrogen can be produced, moved, and stored in the UK market, “all while supporting the UK on its net zero journey.”

According to Colin Brown, UK and Ireland Country Manager of Lhyfe, the partnership represents a chance to “drive forward the clean energy transition through large-scale offshore green hydrogen production”.

The government has set a target of producing 10GW of low carbon hydrogen by 2030, with at least half of this coming from green hydrogen, in order to support the decarbonisation of industrial clusters, among other things.