Inside Centrica’s hydrogen playbook: Is the Aldbrough storage project the missing link in UK energy security?
Discover how Centrica (LSE: CNA) and partners are building the Aldbrough hydrogen hub to reshape UK energy security and decarbonisation.
What is Aldbrough hydrogen storage and why is it vital to the UK’s energy future?
Centrica plc (LSE: CNA), in partnership with Equinor ASA (NYSE: EQNR) and SSE Thermal, is advancing the Aldbrough Hydrogen Storage project as a cornerstone of the United Kingdom’s evolving hydrogen economy. Located on the East Yorkshire coast, the Aldbrough facility is designed to repurpose existing salt caverns—originally constructed for natural gas storage—into one of Europe’s largest hydrogen storage hubs. Once complete, the caverns could store up to 420 million cubic metres of low-carbon hydrogen, with phased operations expected to begin by 2029 and full-scale commercialisation in the early 2030s.
This strategic development is part of a broader effort to secure seasonal energy flexibility in an increasingly electrified grid. While renewables continue to gain share, hydrogen is emerging as the preferred vector for storing excess power and decarbonising hard-to-abate industrial sectors. The Aldbrough site’s massive capacity and proximity to existing pipelines and terminals make it uniquely positioned to become the UK’s hydrogen backbone.
According to Centrica’s public statements and planning documents submitted in May 2025, Aldbrough is envisioned as a central node in the Humber Hydrogen Hub—a regional industrial decarbonisation cluster also involving Saltend Chemicals Park, Easington Terminal, and Net Zero Teesside. With the UK aiming to deliver up to 10GW of low-carbon hydrogen production by 2030, storage capacity will be critical to system reliability and cost efficiency.

What are the latest developments at Aldbrough in 2025?
In the first half of 2025, the Aldbrough project passed several milestones that bring it closer to execution. Most notably, the Pathfinder phase—a 35 MW electrolyser demonstration project integrated with storage caverns and a hydrogen-fired power turbine—received planning approval and is now awaiting financial support from the UK Government’s Hydrogen Allocation Round 2.
This “Pathfinder” plant is intended to become operational by 2029 and will act as a proof-of-concept for flexible generation powered by stored green hydrogen. It will also test the viability of salt cavern storage cycles and provide real-world data to inform regulatory models.
Simultaneously, consultations are underway for the full hydrogen storage development phase. The partners propose converting up to nine existing salt caverns, with construction beginning later this decade. The scale would be unparalleled in the UK and rival some of the largest hydrogen storage sites globally. The project includes advanced instrumentation, hydrogen compression facilities, and integration with hydrogen transmission networks.
Critically, Centrica and its partners have submitted proposals for the Humber Hydrogen Pipeline, a 45 km transmission link connecting Aldbrough to H2H Saltend, Easington, and Teesside. This pipeline will serve as both intake and distribution infrastructure, connecting production sites and industrial offtakers, while also facilitating CO₂ capture in conjunction with Equinor and BP’s Net Zero Teesside initiative.
How does Aldbrough fit into Centrica’s hydrogen infrastructure strategy?
Aldbrough is just one pillar of Centrica’s national hydrogen ambitions. In parallel, the company is advancing re-engineering plans for the Rough gas storage site, which it intends to convert into RoughH2—a hydrogen-ready strategic reserve. With 3.3 billion cubic metres of existing gas storage capacity, RoughH2 could complement Aldbrough by providing more immediate volume, albeit at higher pressure and lower cycle rates.
Centrica’s wider strategy is to create a flexible network of storage and infrastructure assets capable of stabilising hydrogen supply, insulating end-users from price shocks, and enabling a merchant trading market for green molecules. The Aldbrough–Saltend–Easington triangle represents a unique geographical concentration of production, consumption, and storage, aligning with the UK Government’s East Coast Cluster priority status.
Further, the firm is working closely with National Gas and other industry stakeholders to ensure that its assets are compliant with upcoming hydrogen blending and transport standards. These developments could allow Centrica to operate a vertically integrated hydrogen value chain—from gas importation to electrolyser operation, underground storage, and power generation.
How are analysts and institutional investors viewing Aldbrough?
Investor sentiment on Centrica’s hydrogen portfolio is cautiously optimistic. The company’s consistent capital allocation to flexible assets, combined with its energy trading division’s robust performance, has earned it credibility among institutional asset managers focused on infrastructure transition.
Centrica’s share price (LSE: CNA) has remained within the 160–170 GBp range over the last quarter. Analysts at Jefferies and Barclays have highlighted Aldbrough as a potential driver of long-term value, particularly if UK government funding is secured for both Pathfinder and full-scale phases. They also note that the site’s location near industrial clusters and CO₂ pipelines makes it a compelling low-risk deployment opportunity.
Meanwhile, investor interest in the UK’s hydrogen economy more broadly has grown, following the £20 billion Equinor-Centrica gas agreement and the UK’s Clean Power 2030 initiative. That initiative includes provisions for strategic hydrogen storage, which analysts expect to be detailed in regulatory consultations later this year.
What challenges must Aldbrough overcome before becoming operational?
Despite its momentum, Aldbrough faces several implementation risks. First is regulatory uncertainty: while the UK Government has outlined broad targets for hydrogen use and storage, the precise business models—especially for merchant storage and price stabilisation—remain under development. Without clarity, it may be difficult for Centrica to finalise investment decisions or secure offtake guarantees.
Second is the technical challenge of converting salt caverns designed for natural gas to safely and efficiently store hydrogen, which has different molecular behaviour and compression requirements. Engineering partners must demonstrate robust sealing, injection, and withdrawal performance at scale.
Third, integration with production and industrial clusters requires synchronized timelines. If delays occur at H2H Saltend or H2H Easington, Aldbrough’s full utility could be deferred. However, given the phased structure and modularity of the storage design, early-stage caverns may still provide commercial value as buffer and balancing assets.
Finally, cost discipline will be vital. Early estimates suggest cavern conversion costs between £60–80 million per unit, meaning total capex could exceed £600 million. Funding support through mechanisms like the Hydrogen Production Business Model (HPBM), government storage incentives, or private capital injections will be necessary to move beyond Pathfinder stage.
What’s next for Aldbrough and the UK’s hydrogen economy?
Over the next 12 to 18 months, Centrica and its partners are expected to pursue several key milestones. These include a final investment decision (FID) on the Aldbrough Hydrogen Pathfinder project, award decisions under the UK’s Hydrogen Allocation Round 2 funding process, approval and alignment of the Humber Hydrogen Pipeline development, and engineering finalisation for RoughH2 and coordination with UK Government on strategic reserve incentives.
The East Coast Cluster, including Aldbrough, Saltend, Easington, and Teesside, will likely emerge as one of the most investable regions for low-carbon hydrogen in Europe. If successfully executed, Aldbrough will not only underpin Centrica’s low-carbon growth but also offer the UK a replicable template for hydrogen infrastructure nationwide.
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