EET Hydrogen to proceed into final negotiations with UK Government to develop low carbon hydrogen plant in Ellesmere

EET Hydrogen is pleased to announce it has a statement of principles with the UK Government’s Department for Energy Security and Net Zero for its flagship HPP1 low-carbon hydrogen plant. Construction is expected to begin later this year.

The signing of the statement of principles marks an agreement milestone between EET Hydrogen and the UK Government on key aspects of negotiations to date. EET Hydrogen and the UK Government will now enter final negotiations, with the aim of making a final decision later this year.

HPP1 will have an initial production capacity of 350MW, will capture around 600,000 tonnes of CO2 a year – the equivalent to taking around 250,000 cars off the road.

This represents a major milestone for the UK hydrogen industry, for the HyNet Cluster and for EET Hydrogen’s progress towards its goal of developing 4GW of low carbon hydrogen by 2030.

The hydrogen will be provided to industrial businesses across the North West of England to decarbonise their operations, protecting jobs and driving economic growth. The project is the cornerstone of the HyNet cluster and is essential for the cluster to commence construction later this year.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “We have already halved our emissions from 1990 levels, and hydrogen will play a vital role in the UK’s journey towards net zero by providing businesses large and small with cleaner energy in the future.

“By moving into final negotiations with the Ellesmere project, we are working to deliver our ambition of up to 10GW 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:  “Today’s statement of principles is a great outcome for both EET and the UK. Scaling hydrogen capacity is essential to decarbonising heavy industries. 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: “This is a critical milestone for EET Hydrogen and the hydrogen sector in the UK. We are very proud to be leading the way and look forward to starting construction later this year.”

Plans for UK’s largest hydrogen production hub given green light

Cheshire West & Chester Council has approved groundbreaking plans by EET Hydrogen for the first large scale, low carbon hydrogen production plant (HPP1) in the UK located at the Stanlow Manufacturing Complex in Ellesmere Port, Cheshire.

Consisting of two plants (HPP1 and HPP2), the hydrogen hub will enable local industrial and power generation businesses to switch from fossil fuels to low carbon energy. This will help to reduce the North West’s carbon emissions by 2.5 million tonnes every year – the equivalent of taking 1.1 million cars off the roads.

The hydrogen will be used locally by the Essar refinery and other major manufacturers in the region, including Tata Chemicals, Encirc and Pilkington to create the first low carbon refining operations, glass and chemicals manufacturing sites in the world. The EET Hydrogen hub will help to secure and grow vital industries, create jobs and unlock billions of pounds of related investment.

EET will develop the hydrogen hub in phases with the first plant (HPP1) at 350MW capacity, the second (HPP2) at 1,000MW capacity and an overall target capacity of 4,000MW+ by 2030.  These plants are critical to meet the UK’s hydrogen and industrial decarbonisation targets and enable the critical hydrogen infrastructure.

The development is a key pillar of HyNet – the UK’s leading industrial decarbonisation cluster. Construction is anticipated to start on HPP1 in 2024 with low carbon hydrogen produced at the site by 2027.

Richard Holden, HPP1 Project Manager at EET Hydrogen, said:

“This is the largest low carbon hydrogen project in the UK and one of the most advanced in the world. It is a vital piece of the North West’s journey to net zero, underpinning HyNet and providing the opportunity for manufacturers in the region to decarbonise their processes and support UK jobs.

“We have worked closely with regional stakeholders and are delighted to obtain this important approval for the project as we move from ambition to action.”

 

HPP2 FEED Launch

  • EET Hydrogen has commenced Front End Engineering Design for its HPP2 plant
  • Capacity of HPP2 is up to 1,000MW – enough to power the city of Liverpool – and nearly 3x larger than the HPP1 plant (350MW capacity)
  • HPP2 will be the largest low carbon hydrogen plant in the UK and one of the largest in the world
  • The catalyst for the world’s first hydrogen economy – securing and growing UK manufacturing
  • Exceptional value for money given the synergies from scaling from the HPP1 plant

EET Hydrogen is delighted to announce that its HPP2 production project has commenced Front End Engineering & Design (FEED). At up to 1,000MW capacity the plant is expected to be the largest in the UK and one of the largest in the world and will produce some 230,000 tonnes of low carbon hydrogen every year for local industrial and power generation customers.

This follows from HPP1 (350MW capacity plant) that completed FEED in September 2021 and was selected by the government in March 2023 as one of two initial large low carbon hydrogen plants in the UK. HPP2 is the catalyst for investment across the UK North-West for infrastructure that will transport and store hydrogen and for industrial and power generation customers who will ‘fuel switch’ to this low carbon fuel. This will deliver the first low carbon refining, glass and chemicals manufacturing sites in the world. HPP2 will be adjacent to the HPP1 plant, benefiting from the synergies and helping to deliver value for money.

Many of the leading names in UK manufacturing as well as new emerging businesses are supporting the project – a number are quoted below:

Martin Ashcroft, Managing Director of Tata Chemicals Europe, commented: “We have been supporters of EET Hydrogen and the low carbon hydrogen segment as a real opportunity to further reduce emissions at our world class CHP facility.”

Deepak Maheshwari, CEO of EOUK, added: “We are delighted to be an anchor customer for the EET Hydrogen business as we develop and implement a number of sector leading hydrogen use cases and decarbonise our operations and manufacturing processes.”

Adrian Curry, Managing Director of Encirc, said: “This partnership with EET Hydrogen will help us to change the face of glass as we aim to produce Net Zero bottles from 2030. Glass is an incredible material and sustainable in so many ways. It has been around since 3500 BC, and by using hydrogen to decarbonise it, we believe it will be the packaging choice for centuries to come.”

Mo El-Moussaoui, Carbon Reduction Manager, Carrington Power, ESB, said: “In line with our Net Zero to 2040 strategy, we are decarbonising the carbon intensity of our generation fleet. We are delighted to work with EET Hydrogen as we work towards decarbonising our Carrington plant, and the many benefits that will bring.”

Neil Syder, Managing Director of Pilkington United Kingdom Limited said: “We are fully committed to our NSG Group target of achieving carbon neutral by 2050. Firing the float glass furnace using hydrogen instead of natural gas is a key part of our strategy to reduce carbon emissions.”

Paul Shelley, Site Manager at Warrington Ingevity: “Ingevity is proud to partner with HyNet Northwest and EET Hydrogen as we work towards reducing greenhouse gas emissions associated with the manufacture of our Caprolactone range of specialty chemicals at our site in Warrington.”

Jeff Ovens, Managing Director of Fulcrum BioEnergy said: “As a leading pioneer in the commercialisation of waste based sustainable aviation fuels (SAFs), we are working closely with EET Hydrogen to supply low carbon hydrogen for our Fulcrum NorthPoint SAF facility at the Essar Manufacturing Facility, Ellesmere Port. SAF is the only realistic solution to decarbonise aviation,

particularly long haul flight and using low carbon hydrogen as part of our SAF production process, will further improve the overall net CO2 emission reduction benefits of Fulcrum’s fuel.”

Dr Angela Needle, Director of Strategy at Cadent said: “We warmly welcome the announcement that EET Hydrogen has started FEED for its HPP2 plant, a major step in decarbonising industry in the North West. At Cadent we remain focussed on developing the pipeline infrastructure in readiness to connect and transport hydrogen to industry whilst protecting the planet for our customers and the communities we serve.”

Rebranding of Vertex to EET Hydrogen

  • Vertex Hydrogen becomes EET Hydrogen as it moves to the next phase of growth.
  • Intention to move EET Hydrogen from a subsidiary of Essar Oil UK (EOUK) to a sister company of EOUK, becoming a standalone pillar of the Essar Energy Transition (EET) portfolio.
  • Natural step as EET Hydrogen has grown from an early-stage project to a world leader.
  • Provides a platform for EET Hydrogen to broaden and deepen its business and raise capital whilst maintaining strong synergies with EOUK.
  • The legal entity that is developing the flagship HPP1 and HPP2 plants will remain owned 10% by Progressive Energy and 90% by Essar and be part of the wider EET Hydrogen portfolio.

Vertex Hydrogen is announcing that it is changing its brand to EET Hydrogen and that it intends to move from being a subsidiary of Essar Oil UK (EOUK) to a sister company of EOUK and become a standalone pillar of the Essar Energy Transition (EET) portfolio. This change is a natural progression in the development of the company from an early-stage idea into the leading hydrogen production project in the UK.

EET Hydrogen will provide a platform for growth with an ambition to deliver around 4GW of low carbon hydrogen by 2030, around 40% of the UK Government’s national target. This hydrogen will enable businesses to switch from fossil fuels to low carbon energy, securing and growing vital industries and jobs and unlocking billions of pounds of investment.

Essar founded Vertex Hydrogen Limited (VHL) with Progressive Energy Limited (PEL) in January 2022 as an operating subsidiary held 90% by EOUK. VHL was specifically focused on developing the HPP1 and HPP2 low carbon hydrogen production plants at EOUK’s Stanlow site. These plants are the catalyst for a hydrogen economy across the North-West and a central part of the HyNet industrial decarbonisation cluster. HPP1 and HPP2 total up to 1,350MW in size, with HPP1 selected by the UK Government to progress as one of two initial large scale low carbon hydrogen projects. VHL’s direct ownership and focus on HPP1 and HPP2 remain, but under the branding of the EET Hydrogen, which will also develop other hydrogen related businesses. VHL and EOUK have a symbiotic relationship on an arms-length basis and this will remain.

HPP1 Chosen by UK Government

Vertex Hydrogen today welcomes the announcement from the UK Government that its initial HPP1 plant has been selected as one of only two carbon, capture, usage and storage hydrogen production projects to move into the next stage of bilateral negotiations with UK Government. Vertex Hydrogen is a key part of the Essar Energy Transition and is located at Essar’s Stanlow site at Ellesmere Port at the heart of the HyNet industrial decarbonisation cluster.

The HPP1 plant will produce some 350MW of hydrogen from 2026, making it one of the UK’s leading low carbon hydrogen businesses. Joe Seifert, CEO of Vertex Hydrogen, said: “The industrial revolution that led the development of the modern world, was founded and nurtured by the people and natural resources of the North West. Now the same region will lead this emerging low carbon hydrogen industry as a world leader in the race to NetZero. The news is great for the environment and great for the regional economy.”

Vertex Hydrogen signs agreements to supply over 1,000MW of hydrogen to decarbonise leading UK industries

Vertex Hydrogen (“Vertex”) is a leader in the energy transition, developing the UK’s first large scale, low carbon hydrogen production hub at Essar’s site in Ellesmere Port – the heart of the HyNet North West cluster.

Vertex has now signed agreements to supply over 1,000MW of low carbon hydrogen to leading industrial names in the region. This is a similar amount of energy that powers a major city like Liverpool, secures the entire initial hydrogen production capacity of Vertex and enables the vital hydrogen infrastructure investments in the region. This milestone reflects Vertex’s status as the largest and most advanced low carbon hydrogen hub in the UK.

The Project will capture some 1.8 million tonnes of CO2 per annum to be stored by the HyNet project to reduce more than 10% of the region’s industrial emissions – the equivalent to taking 750,000 cars off the roads.

The Project will see over £2 billion of direct investments in the hydrogen plant and associated regional hydrogen transport and storage infrastructure – securing and growing vital jobs in the region.

The hydrogen demand comes from global businesses operating in the region, who are looking to become the first low carbon operations in a number of key sectors by switching their current high carbon fuels to low carbon hydrogen. These consumers are substantial direct and indirect contributors to the 340,000 people employed in manufacturing in the North West. It also includes innovators in the sustainable aviation fuels, glass and cement industries.

Adrian Curry, Managing Director of Encirc, said: “This partnership with Vertex Hydrogen will help us to change the face of glass as we aim to produce Net Zero bottles by 2030. Glass is an incredible material and sustainable in so many ways. It has been around since 3500 BC, and by using hydrogen to decarbonise it, we believe it will be the packaging choice for centuries to come.”

Deepak Maheshwari, CEO of Essar Oil UK, added: “This offtake agreement, and our other initiatives, are continuing examples of us taking clear actions to deliver our strategic goals. We are proud to be a leader in the region and the UK more broadly in industrial decarbonisation.”

Martin Ashcroft, Managing Director of Tata Chemicals Europe, commented: “We have been supporters of Vertex and the low carbon hydrogen segment as a real opportunity to further reduce emissions at our world class CHP facility. This agreement marks the next step in our relationship as we continue our journey as a leader in industrial decarbonisation.”

Neil Syder, Managing Director of Pilkington United Kingdom Limited said: “We are fully committed to our NSG Group target of achieving carbon neutral by 2050. Firing the float glass furnace using hydrogen instead of natural gas is a key part of our strategy to reduce carbon emissions.”

Jeff Ovens, Managing Director of Fulcrum BioEnergy said: “As a leader in pioneering waste based sustainable aviation fuels (SAF), we are working closely with Vertex to supply low carbon hydrogen for our Fulcrum NorthPoint SAF facility at Ellesmere Port. SAF is the only realistic solution to decarbonise aviation and using low carbon hydrogen as part of our SAF production process, will further improve the overall net CO2 reduction benefits of Fulcrum’s fuel.”

John Lewis MBE, Managing Director of SOG Group, commented: “Access to reliable sources of low carbon energy is absolutely vital to our Net Zero aspirations. The agreement we have now signed with Vertex Hydrogen ensures our entire Heath Park project will be ultimately powered by low carbon energy. I view this as a landmark agreement that will enable us to deliver a world-leading business and community environment in the North-West which will benefit future generations.”

Mo Moussaoui, Carbon Reduction Manager, Carrington Power, ESB, said: “In line with our Net Zero to 2040 strategy, we are decarbonising the carbon intensity of our generation fleet. We are delighted to work with Vertex Hydrogen as we work towards decarbonising our Carrington plant, and the many benefits that will bring.”

Darren Elsom, Director of Hydrogen Operations at Cadent said: “We warmly welcome the announcement that Vertex has signed agreements for over 1000MW of low carbon Hydrogen, which is a major step in decarbonising industry in the North West. At Cadent we remain focussed on developing the pipeline infrastructure in readiness to connect and transport Hydrogen to industry whilst protecting the planet for our customers and the communities we serve.”

Paul Shelley, Site Manager at Warrington Ingevity: “Ingevity is proud to partner with HyNet Northwest and Vertex as we work towards reducing greenhouse gas emissions associated with the manufacture of our Caprolactone range of specialty chemicals at our site in Warrington.”

Joe Seifert, CEO of Vertex Hydrogen, said: “We have always said that Vertex is demand-led from leading industrial companies and we have now signed agreements for over 1000MW of hydrogen – our entire expected production capacity from the initial phases of our project. This milestone gives us huge confidence in the economics of the project and the long-term demand for low carbon hydrogen in the coming decades.”

Prashant Ruia, from Essar, said: “Securing over 1000MW of low carbon hydrogen demand from leading UK industrial sites and innovators is a vital step in delivering this world class project. Essar continues to invest in an array of industry leading projects from hydrogen production, biofuels, industrial decarbonisation and infrastructure leveraging our infrastructure, expertise, capital and desire to be a world leader in decarbonisation.”

Vertex Hydrogen Limited is a joint venture between Essar and Progressive Energy.

Vertex and Tata Chemicals Europe sign major low carbon hydrogen offtake agreement

Vertex Hydrogen has signed a ‘Heads of Terms’ offtake agreement for over 200 megawatts of low carbon hydrogen with Northwich-based Tata Chemicals Europe (“TCE”).

TCE is one of Europe’s leading producers of sodium carbonate, salt, sodium bicarbonate and other products used in the manufacture of food and animal feed, glass, detergents, chemicals and several other industry applications.

In June 2022, Tata opened the UK’s first industrial scale carbon capture and usage plant. The £20 million investment captures 40,000 tonnes of carbon dioxide each year – the equivalent to taking over 20,000 cars off the road.

Under the new offtake agreement, Vertex will supply TCE with hydrogen as the manufacturer continues to decarbonise its operations in the UK with a target of achieving “net zero” manufacturing by 2030.

Joe Seifert, CEO of Vertex Hydrogen said: “We are thrilled to sign these Heads of Terms with TATA Chemicals Europe, as an industry leader driving tangible change to reduce emissions. This agreement marks another major step forward in the North West’s energy transition, as Vertex continues to help build the UK’s low carbon energy future.”

Martin Ashcroft, Managing Director of Tata Chemicals Europe, said: “We have been supporters of Vertex and the low carbon hydrogen segment as a real opportunity to further reduce emissions at our world class CHP facility. This agreement marks the next step in our relationship as we continue our journey as a leader in industrial decarbonisation.”

Vertex is proud to be helping the UK lead the development of low carbon hydrogen production as an integral part of HyNet – the UK’s leading industrial decarbonisation cluster. It will help to solve our urgent need to drastically reduce carbon emissions in our manufacturing sector – securing and growing vital industry.

Vertex is:

  • Delivering an initial 1,000 megawatts of low carbon hydrogen capacity –enough to provide the fuel consumed by a city the size of Liverpool;
  • Capturing 1.8 million tonnes of carbon dioxide every year at full capacity –equivalent to taking 750,000 cars off the roads;
  • Investing around £1 billion in the North West of the UK and facilitating the investment of a further £1 billion or more of associated infrastructure;
  • Playing a leading role in kickstarting the UK low carbon, large scale hydrogen market.

Vertex and Pilkington UK sign major low carbon hydrogen supply agreement

Vertex Hydrogen has signed a ‘Heads of Terms’ offtake agreement for low carbon hydrogen with Merseyside glass manufacturer Pilkington UK.

St Helens’ Pilkington United Kingdom Limited, part of the NSG Group, has led the flat glass sector in the switch towards low carbon fuels, completing two world-first trials of hydrogen being fired in a glass furnace.

The agreement sets Vertex up to supply Pilkington UK with hydrogen as the manufacturer continues to develop low-carbon ways of manufacturing glass.

The NSG Group recently announced an increased level of ambition to reduce greenhouse gas (GHG) emissions through a re-certified Science Based Target. It follows Pilkington UK marking 70 years since Sir Alistair Pilkington invented the float glass process, a pivotal moment which transformed the glass industry.

Pilkington UK glass products provide a wide range of benefits, from thermally efficient Pilkington K Glass™ S and Pilkington Suncool™, which help control internal building temperatures and save energy, to bird-safe Pilkington AviSafe™ uniquely patterned UV enhanced coating to reduce bird collisions with windows.

Joe Seifert, CEO of Vertex Hydrogen said: “Pilkington has long been admired as an innovator in the glass industry and led a world first trial of flat glass from hydrogen in 2021 at its famous St Helens facility. The offtake agreement is another iconic name in the north west manufacturing region switching to Vertex’s low carbon hydrogen.”

Neil Syder, Managing Director of Pilkington United Kingdom Limited said: “We are fully committed to our NSG Group target of achieving net-zero by 2050. Firing the float glass furnace using hydrogen instead of natural gas is a key part of our strategy to reduce carbon emissions. Decarbonising the glass making process represents a significant challenge so it’s critical that we partner with academics and industry groups, particularly here in the North West.

Vertex is proud to be helping the UK lead the development of low carbon hydrogen production as an integral part of HyNet – the UK’s leading industrial decarbonisation cluster. It will help to solve our urgent need to drastically reduce carbon emissions in our manufacturing sector – securing and growing vital industry.

Vertex is:

  • Delivering an initial 1,000 megawatts of low carbon hydrogen capacity – enough to provide the fuel consumed by a city the size of Liverpool;
  • Capturing 1.8 million tonnes of carbon dioxide every year at full capacity – equivalent to taking 750,000 cars off the roads;
  • Investing around £1 billion in the North West of the UK and facilitating the investment of a further £1 billion or more of associated infrastructure;
  • Playing a leading role in kickstarting the UK low carbon, large scale hydrogen market.

Vertex and Encirc sign major low carbon hydrogen supply agreement to deliver Net Zero glass

14 December 2022: Vertex Hydrogen is delighted to announce the signing of a ‘Heads of Terms’ offtake agreement for 300+ megawatts of low carbon hydrogen with Encirc.

Encirc, part of the Vidrala Group, is a leading container glass manufacturer – responsible for approximately a third of the containers made for the UK and Republic of Ireland markets – around 3 billion each year.

Encirc has announced its plan to build a new ultra-low carbon furnace on its Cheshire site. The furnace will be fuelled by an energy mix of green electricity and low carbon hydrogen.

The hydrogen will be supplied by Vertex Hydrogen, as part of the HyNet low carbon industrial cluster. The furnace will be operational by 2027, and Encirc is aiming to be the first in the world to produce net zero glass bottles at scale by 2030.

Joe Seifert, CEO of Vertex Hydrogen said: “Glass bottles are an everyday and highly recyclable product we all use. We are delighted to be powering our neighbours Encirc who, along with Diageo, are leading the charge in decarbonising the drinks industry.”

Adrian Curry, Managing Director of Encirc said: “This partnership with Vertex Hydrogen will help us to change the face of glass as we aim to produce Net Zero bottles by 2030. Glass is an incredible material and sustainable in so many ways. It has been around since 3500 BC, and by using hydrogen to decarbonise it, we believe it will be the packaging choice for centuries to come.”

Vertex is proud to be helping the UK lead the development of low carbon hydrogen production as an integral part of HyNet – the UK’s leading industrial decarbonisation cluster. It will help to solve our urgent need to drastically reduce carbon emissions in our manufacturing sector – securing and growing vital industry.

Vertex is:

  • Delivering an initial 1,000 megawatts of low carbon hydrogen capacity – enough to provide the fuel consumed by a city the size of Liverpool;
  • Capturing 1.8 million tonnes of carbon dioxide every year at full capacity – equivalent to taking 750,000 cars off the roads;
  • Investing around £1 billion in the North West of the UK and facilitating the investment of a further £1 billion or more of associated infrastructure;
  • Playing a leading role in kickstarting the UK low carbon, large scale hydrogen market.

Essar Oil UK signs offtake agreement with Vertex Hydrogen

  • Essar Oil UK signs ‘Heads of Terms’ offtake agreement for 280MW+ of Hydrogen, to support the decarbonisation of its processes
  • Vertex Hydrogen (a joint venture between Essar and Progressive Energy) is developing the first large scale, low carbon hydrogen production hub in the UK.
  • Vertex is one of the leading low carbon hydrogen projects globally and as part of the HyNet Consortium, was recently selected as one of four hydrogen projects to proceed to the due diligence phase in the UK Government’s Phase-2 Cluster Sequencing Process.

Stanlow, 28 September 2022: Essar Oil UK Limited (Essar) announces it has signed a ‘Heads of Terms’ offtake agreement with Vertex Hydrogen (Vertex) for the supply of 280MW+ of Hydrogen. The hydrogen will then be used to help decarbonise Essar’s existing production facilities including the new hydrogen powered furnace which was delivered in August this year. (www.essaroil.co.uk)

Vertex, a joint venture between Essar and Progressive Energy, is developing the first large scale, low carbon hydrogen production hub in the UK, as part of the HyNet Consortium (www.hynet.co.uk). This will produce (in its initial phases) 1GW of hydrogen (the equivalent energy use of a large UK city like Liverpool) and capture some 1.8 million tonnes of carbon per annum. By 2030, Vertex expects to deliver nearly 4GW of low carbon hydrogen, equivalent to c.40% of the UK Government’s national target.

Essar achieved a new milestone in its ongoing transition to low carbon operations, following the UK Government’s decision in August this year to shortlist the construction of the hydrogen production plants and a separate carbon capture project at its site in Ellesmere Port, Cheshire. This commitment was confirmed in the UK’s Government’s recent policy statement ‘The Plan for Growth’.

The two projects form part of the Essar’s £1 billion investment into a range of energy efficiency, low-carbon energy, and carbon capture and 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 is delivering plans to significantly reduce its emissions before the end of the decade, to become the UK’s first low-carbon refinery.

Deepak Maheshwari, Chief Executive Officer at Essar Oil UK, commented:

“This is an important statement of intent by Essar and highlights our continued commitment to becoming the UK’s first low carbon refinery. By signing this hydrogen offtake agreement with Vertex Hydrogen, we are helping to de-risk the project, while also securing supply for our production processes into the future and thereby reducing our carbon footprint.”