Energy giant Ørsted and Phillips 66 have decided to temporarily halt their ambitious green hydrogen project.

The Gigastack project aimed to utilise the renewable power generated by the UK’s Hornsea 2 offshore wind farm for green hydrogen production.

This hydrogen would then be supplied to Phillips 66 Limited’s Humber Refinery, with the goal of replacing refinery fuel gas in industrial-scale fired heaters.

In a joint statement, representatives from both companies indicated that the decision was based on a strategic need for further project development and supply chain refinement.

A spokesperson for Phillips 66 Ltd and Ørsted, told Energy Live News: “We have made a joint decision to withdraw our bid from the funding process and pause the Gigastack project.

“We’re proud of the huge amount of work we have done to date to accelerate the deployment of green hydrogen, demonstrating both the potential to integrate with offshore wind energy and the use of hydrogen to refuel critical national infrastructure.

“Phillips 66 Limited and Ørsted believe that further project maturation together with supply chain development is required to unlock maximum potential of this world-scale electrolytic hydrogen project.

“We will continue to work with the governments of the UK, industry and stakeholders to help realise the enormous potential of green hydrogen.”