Essar Energy Transition (EET) has entered final negotiations with the UK Government on its ‘flagship’ HPP1 blue hydrogen plant in Ellesmere.
It follows a ‘statement of principles’ with the Department for Energy Security and Net Zero for the project. Construction is expected to begin later this year, pending a successful final decision.
HPP1 will have an initial production capacity of 350 Megawatt (MW) and capture around 600,000 tonnes of carbon dioxide (CO2) a year, providing hydrogen to industrial businesses across the North West of England. The project is the cornerstone of the HyNet cluster.
Lord Callanan, Minister for Energy Efficiency and Green Finance said, “By moving into final negotiations with the Ellesmere project, we are working to deliver our ambition of up to 10 GW of low carbon hydrogen production capacity, in an industry expected to support up to 12,000 jobs by 2030.”
Tony Fountain, Managing Partner of EET said scaling hydrogen capacity is essential to decarbonising heavy industries.
He said, “This is an important step in our ambitious decarbonisation plan to transform our business and the North West. We appreciate the Government’s partnership which will contribute to protecting skilled jobs in the region and ensuring our industries remain competitive.”
Joe Seifert, CEO of EET Hydrogen said it marked a “critical milestone” for EET Hydrogen and the hydrogen sector in the UK, and it looked forward to starting construction.
It marks the first step in EET’s goal to develop an initial 1 gigawatt (GW) of blue hydrogen for the UK market, through Vertex Hydrogen, with follow-on capacity of 4GW by 2030. The UK Government is targeting 2 GW of hydrogen capacity by 2025.
Essar Group launched EET last February, to drive the creation of the UK’s energy transition hub in North West England.
EET plans to invest $3.6bn in developing a range of low carbon energy transition projects over the next five years, of which US$2.4bn will be invested across its site at Stanlow, between Liverpool and Manchester, and $1.2bn in India.
EET brings together the complementary technologies and solutions across the Essar business including EET Fuels, EET Hydrogen, EET Future Energy, EET Biofuels and Stanlow Terminals.