EET Hydrogen is the UK’s leading low carbon hydrogen production hub situated at the heart of HyNet cluster in Stanlow and is expected to be the first large low carbon hydrogen producer in the world. We are decarbonising industrial companies by enabling them to switch their energy source from fossil fuels to low carbon hydrogen. It is a joint venture between Essar Oil (UK) Ltd (“EOUK”) and Progressive Energy Ltd.
EET Hydrogen is located at the refinery’s FCC unit in Stanlow Manufacturing Complex in Ellesmere Port, United Kingdom.
The initial project of 350MW capacity, HPP1 will begin operations by start of 2027 (FEED of which is already completed in 2021). The expansion of this, next 700MW capacity, HPP2 will begin operations by first quarter of 2028, FEED of which is supposed to be completed by first quarter of 2024.
HPP1 will utilise natural gas and refinery off-gas (“ROG”) as feedstock. HPP1 will have flexibility to operate utilising a combination of natural gas (~60%) and ROG (~40%) or natural gas only. ROG will be supplied by EOUK under a long-term ROG Supply Agreement.
EET hydrogen has Unique geographic location advantage, sited at the heart of the infrastructure to produce, transport and store low carbon hydrogen (“LCH”) across the Northwest region, as well as the infrastructure to capture, transport and lock away carbon dioxide emissions from industry. Located at EET’s Stanlow Manufacturing Complex (Upper tier COMAH site (highly regulated site), it has the access to utilities & expertise, 6% of UK H2 production already (grey) and Refinery as anchor customer.
It also has the scale and capacity which offers 32% of initial 1.1GW projects selected for blue hydrogen and has plans to provide 44% of Government’s 10GW 2030 Goal. It is selected by the UK Government as one of two major projects to proceed.
It helps in securing and growing 3,40,000 manufacturing jobs with £1 bn direct investment. It also helps in capturing 2.5 MTPA of CO2 which is equivalent to taking 1million cars off the roads.
The hydrogen production technology selected is the Johnson Matthey (“JM”) LCH which offers a very high overall efficiency by coupling a Gas Heated Reformer (“GHR”) with an Automated Reformer (“ATR”). The JM process is essentially a modified version of the traditional and widely used steam methane reformation (“SMR”) process for hydrogen production. The key difference is the combustion of methane in oxygen rather than air in the GHR to drive the reaction in the ATR stage of the process. This allows for capture of CO2 at higher pressure, in smaller vessels and delivers higher capture rates
Green & blue hydrogen are two forms of hydrogen fuel that differ in their production processes and environmental impact. The primary distinctions between green and blue hydrogen are:
- Production Method: Green hydrogen is produced by electrolysis of water using renewable energy sources including solar or wind power, whereas blue hydrogen is produced by steam methane reforming using natural gas.
- Carbon Emissions: The production of green hydrogen generates no carbon emissions, whereas the production of blue hydrogen generates carbon emissions which are captured and preserved underground via carbon capture and storage technology.
- Environmental Impact: Green hydrogen is viewed as to be a greener kind of hydrogen fuel because its production does not produce carbon emissions. Blue hydrogen is believed to be a less polluting kind of hydrogen than conventional methods of producing hydrogen, but it still contains carbon.
- Production Scale: Green production of hydrogen is still in its infancy, and the technology for producing it on a large scale is still being developed, whereas blue hydrogen generation is already in incorporate and can be produced on a large scale.
Due to the high cost of renewable energy and electrolysis equipment, it is believed that green hydrogen is more costly for production than blue hydrogen. Natural gas, that is more abundant and less costly than renewable energy, is used to produce blue hydrogen, making it cheaper to produce.
HyNet is a complete system of hydrogen production, hydrogen supply, hydrogen utilisation, carbon capture, transportation and carbon sequestration located in a concentration of industry, existing technical skill base and suitable geology in the Northwest of England. HyNet Northwest Cluster has been selected as Track-1 cluster to be prioritised for deployment in the mid-2020s by UK government.
EET Hydrogen sells Hydrogen to customers at the cost of natural gas and buys natural gas as a feedstock. Contract for Difference Mechanism gives hydrogen producer annual subsidy to compensate for cost of production being higher than selling price of hydrogen. It Assumes low-carbon hydrogen sold at floor price equivalent to natural gas price (counterfactual fuel price).