The world's first hydrogen-fuelled power station is to be built in the Humber region as part of plans to make the area the "centre of the UK's decarbonisation strategy".
Two low-carbon stations will be developed at Keadby in Scunthorpe, replacing older carbon-based stations in a move that is expected to create thousands of green jobs for the region.
The plants, known as Keadby 3 and Keadby Hydrogen, will be built by Equinor and SSE Thermal and will compromise of the UK's first power stations with carbon capture and storage technology.
The plans are part of the UK's commitment to becoming net-zero carbon by 2050.
The companies say that Keadby 3 could deliver 15% of the target for 10MT of carbon captured annually by 2030, while the demand from Keadby Hydrogen could account for a third of the 5GW hydrogen production goal.
The Keadby 3 plant will be fuelled by natural gas and fitted with carbon capture technology to remove CO2 from its emissions - the captured carbon will be stored under the North Sea - the plant is expected to be online by 2027.
The Keadby Hydrogen plant is expected to be online by the end of the decade.
Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy, said: "The Humber region is at the heart of our commitment to tackle climate change and is already on the frontline of developing vital clean technologies which will change the way people’s homes and businesses are powered while slashing emissions.
"This new partnership will ensure that world-first technology is being developed in Scunthorpe and across the Humber, creating green jobs and bringing new investment which will benefit local communities and businesses – revitalising this industrial heartland as the UK builds back greener."
Stephen Wheeler, Managing Director of SSE Thermal, said: "We’re delighted to be announcing this agreement with Equinor through which we aim to develop these first-of-a-kind low-carbon power stations.
"These projects would play a major role in decarbonising the UK’s flexible generation capacity while supporting a green economic recovery in the Humber."
He added: "With over 12 million tonnes of annual carbon emissions, ideal transport and storage options, and major energy and industrial companies working together, the Humber has to be at the centre of the UK’s decarbonisation strategy.”