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Article by Amanda Jasi
REFINERY owner Essar Oil UK and Progressive Energy, a project development and implementation company, have signed a memorandum of understanding (MoU) for joint delivery of what would be the UK’s first low carbon hydrogen production hub. The hub is set to receive a total investment of £750m (US$1.02bn).
Hydrogen, which is receiving widescale attention as an energy carrier, has an important role to play in a net-zero, including by decarbonising industry, transport, and energy production. Globally, efforts for hydrogen production are being ramped up.
The planned joint venture will initially produce 3 TWh/y of low carbon hydrogen from 2025, with the companies planning to develop another facility soon after to manufacture twice that amount of hydrogen. With a total manufacturing capacity of more than 9 TWh/y, the hub would produce energy equivalent to that used for heating across Liverpool, according to the partners.
Essar UK and Progressive Energy have set up a venture to produce low carbon hydrogen at Essar’s Stanlow Refinery in Ellesmere Port, Cheshire. “The joint venture 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,” a statement by the two firms said.
Natural gas and fuel gases from the refinery, will be converted into low carbon hydrogen, with carbon dioxide safely captured and stored offshore in sub-surface reservoirs in Liverpool Bay. The hydrogen production hub will deliver clean energy to industry in the HyNet ‘low carbon cluster’, as well as for domestic and transport purposes, the statement added.
Essar, which operates downstream energy businesses in the UK, and Progressive Energy, developers of HyNet North West, have joined forces to set up a venture to produce low carbon hydrogen at Essar s Stanlow Refinery in Ellesmere Port, .
Essar Group in partnership with clean energy specialist Progressive Energy will invest 750 million pound 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 will manufacture hydrogen at the refinery for use across the HyNet region, the firms said in a statement. The plants would 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.