Hydrogen success sees key milestone reached in Essar transition

Alongside the arrival of its new furnace, Essar reached another significant milestone in its transition to low carbon operations with the Government’s decision to shortlist Stanlow hydrogen and carbon capture projects.

Government’s decision to shortlist Stanlow hydrogen plant and carbon capture projects as part of Cluster Sequencing programme sees Essar reach another milestone in transition to low carbon operations

The announcement by the Department for Business, Energy & Industrial Strategy (BEIS) confirmed that projects to construct a new hydrogen plant and install carbon capture technology at the site in Ellesmere Port, Cheshire, have been selected as part of the UK Government’s Carbon Capture, Usage and Storage (CCUS) Cluster Sequencing programme.     

The new hydrogen plant will help Essar deliver its goal of producing 3.8GW of low carbon hydrogen by the end of the decade – almost 40% of the Government’s recently extended target of achieving 10GW by 2030. Part of HyNet, the plant is being built by Vertex Hydrogen and will significantly reduce CO2 emissions every year. The project will also create thousands of new jobs in the North West and North Wales.

The installation of industrial carbon capture technology at the Stanlow refinery, which will enable the direct capture of more than 800,000 tonnes of CO2 per year, is also shortlisted.

Investing in a low carbon future

These two projects, along with the installation of the hydrogen furnace, form part of the company’s £1 billion investment in a range of energy efficiency, low carbon energy and carbon storage initiatives, designed to decarbonise its production processes and put Essar at the forefront of the UK’s shift to low carbon energy. The company has plans underway to reduce its emissions by 90% before the end of the decade.   

Deepak Maheshwari, commented: “Essar Oil UK continues to deliver on its promise of leading the UK’s low carbon transition. Our programme of major investment is decarbonising our own operations and supporting the development of low carbon economy across the North West and North Wales, creating thousands of jobs and securing the long-term future of this crucial facility.”