National Gas has commenced the design of Project Union: St Fergus to Teesside – the second phase of a core hydrogen network across Great Britain. The proposed 350-mile hydrogen network will connect Teesside, on the East Coast of England, to St Fergus in the North East of Scotland, as part of a 1,500-mile underground national hydrogen network to connect some of Britain’s most important industrial regions and anchor the country’s emerging hydrogen economy. Project Union will create a 100% hydrogen network to power British industry, driving economic growth, protecting and creating jobs, and strengthening the UK’s energy security.
St Fergus to Teesside will form the backbone of a clean-energy corridor designed to boost regional economies, protect and create jobs, and enhance energy security by enabling a shift towards low-carbon energy. Once operational, it will provide low-carbon hydrogen to power stations, industry and storage sites – unlocking the UK’s hydrogen economy at scale, enhancing energy security and protecting jobs. By repurposing existing natural gas pipelines — and building new ones where needed. Project Union will also help meet UK Government targets of net zero emissions by 2050 by enabling a transition to more home-grown, low-carbon energy for hard-to-decarbonise industries.
Speaking about this milestone, Ian Radley, Chief Commercial Officer at National Gas, said; “Reaching the advanced engineering design phase for the St Fergus to Teesside section of Project Union is a significant milestone in the development of Britain’s hydrogen transport infrastructure. This network will play an important role in connecting hydrogen clusters across key industrial regions, to power British industry and strengthen our energy security. By progressing this next phase of the national hydrogen network, we are supporting Britain’s ambitions to decarbonise industry and unlock future low-carbon growth opportunities, while helping to deliver long-term economic benefits for communities and businesses along the route.”
St Fergus to Teesside is the second phase of Project Union – National Gas’s vision for a national hydrogen network. The first phase – Project Union: East Coast – connects Teesside, through Yorkshire and the Humber, and south into the East Midlands, through a 300mile hydrogen pipeline across the East Coast of England. The project is funded as part of a £164 million package for three National Gas projects to deliver more than 50% of the proposed national hydrogen network.
Nigel Holmes, CEO of Hydrogen Scotland, added: “Project Union’s hydrogen pipeline from St Fergus in Scotland to Teesside in England will unlock hydrogen’s potential to decarbonise UK industry with production of clean fuels, ammonia and SAF at Grangemouth from low carbon hydrogen. This UK hydrogen backbone will also reduce renewables curtailment and enable access to large scale underground hydrogen storage sites for the long duration responsive power generation which is essential for UK energy security.”
Hydrogen can enhance Britain’s energy security by providing flexible, cleaner energy power generation and industries. As an alternative fuel to natural gas, it can be used to decarbonise power generation and hard-to-electrify industries such as heavy manufacturing, chemicals and steel production. It can also be used as a feedstock for high-value products such as ammonia and Sustainable Aviation Fuel (SAF). What Project Union signifies for Scotland:
- Connecting key industrial clusters: linking the major industrial hubs at Grangemouth and St Fergus with demand centres in the North of England.
- Harnessing Scottish renewables: enabling the use of Scotland’s wind and other renewable resources to produce green hydrogen, which can then be transported to power industry and homes.
- Enable access to cost-effective, low-carbon hydrogen across the UK: helping decarbonise industry, power generation and transport, while bolstering Britain’s energy security.
Linking hydrogen production with end-use demand in industrial clusters will help attract private investment, drive innovation, and develop new regional skills in engineering, manufacturing, and clean-energy services. Project Union: St. Fergus to Teesside will connect the important Forth Valley industrial clusters of Grangemouth and Mossmorran with Teesside and additionally, key offtakers and inland industrial regions alongside the hydrogen pipeline route.
Early analysis commissioned by National Gas indicates that Project Union could support around 3,100 jobs at peak construction and deliver £300 million in annual direct gross value added to the economy, while the nationwide hydrogen sector has the potential to deliver tens of thousands of jobs and billions in annual economic value. Hydrogen will complement other energy sources, helping power industry for future generations. It will protect existing jobs by ensuring the long-term viability of industrial activities through an effective, low-carbon alternative fuel source, while also creating new roles in the growing green economy, placing Britain at the forefront of a burgeoning global green energy market. The need for a national hydrogen network has been identified by the Climate Change Committee, the Second National Infrastructure Assessment and in the Government’s Hydrogen Transport and Storage Networks Pathway.
About Project Union: In November 2025 Ofgem confirmed a total of £164 million for three National Gas projects that will accelerate the development of the Project Union core hydrogen network, including the route from St Fergus near Aberdeen to Teesside in North-East England. Ofgem has also announced an additional £107 million in funding for two new projects, in addition to the £57 million confirmed in June for Project Union: East Coast. These investments will enable more than 50% of National Gas’s proposed core hydrogen network, known as ‘Project Union’, to advance into the detailed engineering design phase.
Project Union aims to repurpose existing natural gas pipelines and construct new ones where necessary to establish a 1,500-mile core hydrogen network across Britain connecting regional hydrogen industrial clusters in Scotland, including Grangemouth & Mossmorran in the Forth Valley, with Teesside & Humberside in North East England and Merseyside in North West England.
Link to Project Union St Fergus to Teesside announcement: https://www.nationalgas.com/media/news/next-phase-britains-national-hydrogen-network-takes-major-step-forward-connect-scottish
