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Essar Group to infuse GBP 750 million to set up hydrogen project in UK

Thursday, 14 Jan 2021
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Essar Group in partnership with clean energy specialist Progressive Energy will invest GBP 750 million to build the UK's biggest low carbon hydrogen production hub at Stanlow refinery in Ellesmere Port, Cheshire.

The investment in two plants will be part of the HyNet scheme, a project to supply low carbon hydrogen to industrial sites and homes in north-west England.

The joint venture (JV) will manufacture hydrogen at the refinery for use across the HyNet region.

The plants will be built next to Essar's Stanlow refinery in north-west England. Natural gas and fuel gases from the refinery will be converted into low carbon hydrogen, with carbon dioxide captured and stored in depleted undersea gas fields 60 km offshore in Liverpool Bay.

The refinery will be converted to burn hydrogen instead of natural gas. The project will provide Essar Oil UK with low carbon hydrogen to decarbonise its own energy demand in addition to creating a hydrogen economy across north-west England and north-east Wales.

The first plant should open in 2025 while the second is expected in 2027.

The hydrogen production hub will deliver clean energy to the industry in the HyNet 'low carbon cluster', as well as to fuel buses, trains and heavy goods vehicles to heat homes and generate electricity when the sun is not shining or the wind blowing.

The UK's first low carbon hydrogen hub will initially produce three TWh of low carbon hydrogen each year from 2025.

This will be quickly followed by a facility twice this size giving a total capacity of over nine TWh of hydrogen per annum, equivalent to the energy used for heating across the whole of Liverpool.

The agreement between Essar Group and Progressive Energy provides the basis to take the project through final development and into construction and operation. The project will be jointly delivered by the two companies.

 
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