Up to 2,000 homes and businesses on Teesside could be powered by hydrogen energy, according to proposals announced by Northern Gas Networks - the gas distributor for the North of England.
Plans for the UK's first "hydrogen village," which have been given the go ahead by Government and energy regulator Ofgem, would see hydrogen energy on parts of Redcar for heating and cooking.
It is hoped that the investment in hydrogen energy will see Teesside become a leading area for green energy, from as early as 2025.
Under the plans, the current gas supply would be switched to locally produced hydrogen, which would be made from renewable sources, in Redcar town centre, Warrenby, Coatham, and parts Kirkleatham.
Hydrogen is a green alternative to gas, as it does not produce any carbon.
Currently using gas creates around a quarter of the country's carbon emissions. This scheme is part of The Government's efforts to achieve net zero carbon emission by 2050.
Redcar was chosen as the area for the hydrogen village due to its close links to existing energy infrastructure, including hydrogen and production storage facilities.
Mark Horsley, CEO of Northern Gas Networks said: "Teesside has a proud industrial heritage and is now embracing the green industrial revolution with hydrogen production bringing skilled jobs to the area.
"Heating homes and businesses with this homegrown hydrogen... is a logical step as part of our work to bring sustainable, affordable and secure energy supplies to customers and communities throughout the North of England."
The MP for Redcar Jacob Young said: "I'm absolutely delighted that Northern Gas Networks has now formally proposed Redcar to be its pioneer for the future of hydrogen-fuelled homes.
"We were at the forefront of the Industrial Revolution and through projects like this, we will lead our Green Industrial Revolution too."
Northern Gas Networks is now working to develop the plans in more detail, working with locals and businesses as part of a consultation period.
A final decision about the project will made in 2023, with the project expected to start from 2025.