Energy company Vertex Hydrogen, a joint venture between Essar Oil UK and Progressive Energy, has signed agreements to supply over 1,000 MW of low-carbon hydrogen to industrial names in the UK.
Currently, the company is 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 said the project will capture some 1.8 million tonnes of CO2 per annum to be stored by the HyNet to reduce more than 10% of the region’s industrial emissions.
It added that 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.
HyNet North West is a low-carbon and hydrogen energy project expected to unlock a low-carbon economy for the UK’s North West and North Wales. According to Vertex, it will reduce carbon dioxide (CO2) emissions by 10 million tonnes every year by 2030.
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 1000 MW 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.”
Deepak Maheshwari, CEO of Essar Oil UK, said: “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.”
Prashant Ruia, from Essar, added: “Securing over 1000 MW 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.”
By 2030, Vertex said it expects to deliver nearly 4 GW of low-carbon hydrogen.