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.
“The UK’s first low carbon hydrogen hub will initially produce 3 terawatt-hours (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 9TWh of hydrogen per annum, equivalent to the energy used for heating across the whole of Liverpool. A total investment of approximately £750 million will be committed to deliver the two hydrogen production hubs,” the statement said.
The agreement between Essar 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. Progressive Energy originated the HyNet North West decarbonisation cluster, and Essar’s downstream energy activities in the area provide a natural structure for delivery.