Tees Green Hydrogen, based at Teesport, is one of those successful in winning government funding, external.
EDF Renewables UK, which is behind the project, said it would use green electricity from the Teesside Offshore Wind Farm along with a new solar farm it planned near Redcar to power its hydrogen electrolyser.
But the government said it would not have sufficient capacity to supply the home hydrogen pilot.
Energy company BP, whose proposed HyGreen facility had a provisional agreement to supply the majority of the pilot’s hydrogen, said it was “disappointed” its scheme had not been included in the funding announcement.
It remained “committed” to the project which had “the potential to help Teesside transform into a world-class” hydrogen and carbon capture and storage hub, it said.
The government said it would decide in 2026 whether to use low-carbon hydrogen in decarbonising heating “in slower time in some locations” and, if so, how.