March 24, 2026 [Gas World]- Energy firm Uniper has secured planning permission to develop a large-scale green hydrogen production facility at its Killingholme site in North Lincolnshire, the UK.

The company confirmed that North Lincolnshire Council approved plans for its Humber H2ub (Green) project on 20 March, following an application submitted in October 2025 and a period of public consultation.

The proposed facility will feature 120 MW of electrolyser capacity in its initial phase, with scope to expand by a further 200 MW or more. Once operational, the site is expected to produce hydrogen that meets the UK Government’s Low Carbon Hydrogen Standard.

Uniper said the project has also been shortlisted under the Government’s Hydrogen Allocation Round 2 programme, positioning it among a group of projects competing for revenue support as the UK scales up domestic hydrogen production.

Hydrogen produced at the site is intended to supply Phillips 66 Limited’s Humber Refinery from 2029, supporting efforts to cut Scope 1 emissions at the facility.

The development forms part of wider industrial decarbonisation activity across the Humber, one of the UK’s most carbon-intensive regions.

Guy Phillips, Uniper’s UK Hydrogen Business Development Lead, described the decision as “an important milestone” for the project.

“[This is] another step towards realising industrial scale low carbon hydrogen production in the Humber,” he added.

Economic analysis carried out for the company suggests the project could contribute more than £40m annually in gross value added to the UK economy, with up to £20m benefiting the Yorkshire and Humber region.

The Humber H2ub (Green) scheme adds to a growing pipeline of hydrogen projects across the UK, as policymakers and industry seek to build out production capacity and establish early demand from industrial users.

News of the planning approval comes as new analysis from GlobalData suggests the hydrogen sector is struggling to scale, with relatively few large-scale projects progressing to final investment decisions amid demand uncertainty and constrained investment.

“Despite accounting for the bulk of the project numbers, the cumulative capacity of green hydrogen initiatives remains relatively modest. Thus, their output is not large enough to displace established energy sources, such as natural gas or utility-scale renewables,” said Ravindra Puranik, Oil and Gas Analyst at GlobalData.