Stanlow, 19th October 2021: Essar Oil UK (‘EOUK’) is pleased to confirm today that HyNet North West (‘HyNet’) has been selected as a Track-1 cluster for the mid-2020s and will be taken forward into Track-1 negotiations as part of the UK’s Carbon Capture, Usage and Storage (CCUS) Cluster Sequencing Process.
The HyNet North West consortium, which includes EOUK, Progressive Energy, ENI and Cadent Gas plus a host of other partners, is committed to delivering an integrated carbon capture and the first blue low carbon hydrogen production system in the country. EOUK’s Stanlow Manufacturing Complex will play a central role in the HyNet project, as the site for the proposed construction of hydrogen production plants in partnership with Progressive Energy.
The planned construction of two blue hydrogen production hubs at Stanlow is a potential £750 million investment, supporting a hydrogen economy across North West England and North East Wales. A planning application for the plants was submitted last week to Cheshire West and Chester Council.
As outlined in the Prime Minister’s 10 Point Plan, a commitment to deploying CCUS is central to meeting the UK’s net zero goals and remains crucial for industrial decarbonisation, low carbon power, engineered greenhouse gas removal technologies and delivering the Government’s 5GW by 2030 low carbon hydrogen production ambition.
Chief Executive Officer, Deepak Maheshwari, commented: “Essar is delighted that HyNet North West has been selected to progress within Track-1 of the industrial decarbonisation Cluster Sequencing process. This is a transformative decision which further boosts Essar’s growing momentum as we transition to low carbon operations, continue to invest in Stanlow’s evolution to power the UK’s post-carbon economy and regenerate regional growth. We look forward to working with the Government and other regions to deliver low carbon clusters.”
Hynet’s inclusion in the Track-1 cluster marks a significant milestone in EOUK’s planned transformation into a major player in the UK’s low carbon revolution and places the region at the leading edge of the UK’s transition to net zero by 2050.
The selection as part of the first phase of Government’s cluster sequencing also follows other steps in the planned evolution of Stanlow as a leading low carbon energy cluster. In addition to its involvement in HyNet, Essar has also announced plans to create a new facility to convert non-recyclable household waste into sustainable aviation fuel (SAF) for use by airlines operating at UK airports. The project involves Essar, Fulcrum BioEnergy and Essar’s subsidiary company Stanlow Terminals Limited and will convert several hundred thousand tonnes of pre-processed waste, otherwise destined for incineration or landfill, into approximately 100 million litres of low carbon SAF annually.
NOTES TO EDITORS
Further information about HyNet can be found at www.hynet.co.uk.
About Essar in the UK
Essar Oil UK is a leading UK-focused downstream energy company whose main asset is the Stanlow Manufacturing Complex, one of the most advanced refineries in Europe situated close to the major cities of Liverpool and Manchester. Stanlow has 800 employees, and is a key strategic national asset, annually producing over 16% of the UK’s road transport fuels, while playing a key role in Britain’s broader petrochemical industry. Since acquiring Stanlow in 2011, Essar has invested $1 billion in margin improvement and other efficiency initiatives to ensure the refinery remains competitive in a rapidly changing market.
The company is a major supplier in the North West and beyond with customers including most of the major retail brands operated by international oil companies and supermarkets, Manchester Airport, leading commercial airlines and the region’s trains and buses.
Essar is committed to playing a key role in the decarbonisation of the UK economy, with ambitious plans to build a green energy industrial cluster at Stanlow. These include the construction of two new low carbon hydrogen production units on site as part of the HyNet consortium, with a planned total investment of approximately £750m to deliver the hydrogen production hubs. Follow on capacity growth is planned to reach 80% of the UK Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 2030.
The company is also working with Fulcrum BioEnergy on a £600 million project to create a new facility to convert several hundred thousand tonnes of non-recyclable household waste each year into sustainable aviation fuel (SAF) for use by airlines operating at UK airports.
Ian Cotton, Head of Communications
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Peter Ogden, Partner, Powerscourt
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