UK: Essar sets up Vertex Hydrogen to drive energy transition
The company partnered up with Progressive Energy to build the region's largest hydrogen hub at the Stanlow Manufacturing Complex.
Essar has announced the creation of Vertex Hydrogen Limited, a new joint venture alongside with Progressive Energy, to build the UK’s largest hydrogen hub at the Stanlow Manufacturing Complex. The company has been formed to provide the catalyst for development of a hydrogen economy across North West England and North Wales, as a central part of the HyNet decarbonisation cluster.
The UK’s first low carbon hydrogen facility at Essar Stanlow will sit at the heart of the HyNet low carbon cluster, to produce a total of 1GW per year of hydrogen, across two units, from 2026. This initiative is a core part of a wider strategy by Essar globally to focus on investing in energy transition through the transformation of existing portfolio companies, and investments in new ventures, providing low carbon hydrogen across North West England and North Wales.
“Essar is massively committed to investing in energy transition and is building a portfolio of companies in this space. Vertex Hydrogen is a central component of that vision, which will be instrumental in helping create a hydrogen future for North West England and North East Wales,” said Prashant Ruia, Chairman of Essar.
Waste fuel gases from Essar Stanlow, and natural gas, will be converted by Vertex Hydrogen into hydrogen, with carbon dioxide safely captured and stored by HyNet partner Eni SpA, underground offshore in Liverpool Bay. The hydrogen production hub will provide low carbon energy to replace fossil fuels in industry across the HyNet region, as well as heating homes, and fuelling buses, trains and trucks.
“Vertex Hydrogen is a critical investment for Essar in helping it achieve its vision of becoming the UK's first low carbon refinery and supplying UK markets with the sustainable fuels of the future,” added Deepak Maheshwari, Chief Executive Officer of Essar.
A total investment of approximately £1 billion will be committed to deliver the hydrogen production hub. In its first step, the hydrogen produced will be implemented by Essar to reduce its carbon footprint at the Stanlow Manufacturing Complex. In addition, Vertex will also provide low carbon hydrogen to a wide range of businesses, including companies from the chemicals, ceramics, paper, glass and flexible power generation sectors.
