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British gas giant Cadent is planning a 60-mile energy pipeline in the north of England.
The energy distribution company, owned by former Thames water owner Macquarie, will develop the first “blue hydrogen” scheme of its kind in the UK.
An underground pipeline will run from a plant near Ellesmere port to Cheshire.
Registered customers include Heineken and Kraft Heinz, The Sunday Telegraph reported.
Blue hydrogen production has faced backlash from eco-warriors as it still uses fossil fuels.
Controversial: Underground oil pipeline will run from plant near Ellesmere port to Cheshire
It involves combining natural gas with steam, creating carbon dioxide.
Cadent chief strategy officer Angela Needle said the Hynet project “will serve as a model for industrial decarbonisation, enabling growth and supporting the Government to achieve its 2030 clean energy mission”.
It comes as Energy Secretary Ed Miliband pledges to invest £1bn in plans to produce blue hydrogen.
But scientists have warned that this technology could make it harder to achieve ecological goals.
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