New Delhi: Vertex Hydrogen, a joint venture between Essar Oil UK and Progressive Energy, has been chosen by the UK government as part of one of the two hydrogen plants that will help build the UK’s hydrogen economy.
The announcement follows the UK government’s commitment to providing up to £20 billion in funding for early deployment of carbon capture, usage and storage to help meet its climate commitments.
According to the official press release, the funding supports private investment and job creation in locations including the North West of England, Essar’s UK home.
“I welcome and thank the UK government for their support on our investment. This enables us to confidently move forward with our plans in EET to build a premier energy transition hub in the North West of the UK, anchored around our Stanlow Refinery. Today, huge progress has been made,” said Prashant Ruia, director, Essar Capital.
He added that the company is more confident than ever in the potential of their UK site, with its core contribution to HyNet, to play a vital role in the UK’s decarbonisation strategy and to act as a catalyst for significant investment in the region.
“We are demonstrating how legacy industrial businesses can become part of the solution, and drive decarbonisation across the North West’s industrial heartlands,” he said.
Vertex Hydrogen is a key part of Essar Energy Transition (EET) which is planning investment of $3.6 billion in developing a range of low carbon energy transition projects to support the UK’s decarbonisation strategy.
Recently, Essar launched EET to invest $3.6 billion in developing a range of low carbon energy transition projects over the next five years, of which $2.4 billion will be invested at the Stanlow site in Ellesmere Port, between Liverpool and Manchester.
This plan includes Vertex Hydrogen which will produce some 350 MW of hydrogen from 2026, making it one of the UK’s leading low carbon hydrogen businesses. About 600 thousand tonnes of CO2 will be captured and stored using HyNet’s carbon-capture infrastructure – the equivalent to taking around 250,000 cars off the road.
Vertex provides vital but hard-to-abate industrial and power generation businesses with a route to decarbonise delivering job certainty and growth in a globally emerging sector. The direct investment in the production plant will be nearly £500 million and is a critical first step in building a hydrogen economy in the North West.
The UK already benefits from an advanced regulatory and policy framework to support low carbon energy production, including the UK government’s target of achieving 10GW of hydrogen production by 2030.
In addition to the $2.4 billion investment in the UK, EET will also invest $1.2 billion in developing a cost-efficient global supply hub for low carbon fuels in India.