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An oil refinery of Essar Oil. (File Photo: Reuters)
An oil refinery of Essar Oil. (File Photo: Reuters)

Essar Oil to set up hydrogen project in the UK

  • It will invest 750 million pounds in two plants to be set up by Progressive Energy as part of the deal. 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

MUMBAI: Essar Oil UK will build the country's first low-carbon hydrogen hub along with UK-based Progressive Energy, at the former's Stanlow refinery in Ellesmere Port, Cheshire, the company said today.

This will help provide Essar Oil with low-carbon hydrogen to decarbonise its energy demand in addition to creating a hydrogen economy across northwest England and northeast Wales.

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The company will invest 750 million pounds in two plants that will be set up by Progressive Energy as part of this venture.

The hub will initially produce 3 terawatt-hours (TWh) of low carbon hydrogen each year, beginning 2025, followed by 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.

Follow-on capacity growth is planned to reach 80% of the government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 2030.

“We cannot reach net zero without decarbonising industry. Delivering net zero requires a transformation of our energy system. HyNet will unlock the low carbon hydrogen economy in the North West, reducing emissions and creating and safeguarding jobs," said Chris Manson-Whitton, director at Progressive Energy.

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 to fuel buses, trains and heavy goods vehicles, to heat our homes, and to generate electricity when the sun is not shining or the wind blowing.

“HyNet and hydrogen production is integral to Stanlow’s strategy and will set it on a journey to be the UK’s first net zero emission refinery with the ambition to avoid emissions of over 2 million tonnes of carbon dioxide to the atmosphere per year, the equivalent of taking nearly a million cars off the road," said Stein Ivar Bye, chief executive officer, Essar Oil UK.

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