Press Release

HyNet Funding to Support Development of Hydrogen Production Facility in Cheshire

  • Oct 23, 2019
  • Fuelcells Works

HyNet, a ground-breaking hydrogen energy, and carbon capture, utilization, and storage (CCUS) project, is a central component of the North West’s bid to become the UK’s first low carbon industrial cluster by 2030.

Rising to the Government’s Industrial Clusters Mission challenge, the North West came together earlier this year in a historic collaboration led by the North West Business Leadership Team (NWBLT). The North West Energy and Hydrogen Cluster could deliver 33,000 jobs, over £4bn investment and save 10 million tonnes of carbon per year.

Richard Carter, Chairman of NWBLT and Managing Director UK & Ireland of BASF said: “The North West came together with the ambition to be the UK’s first low carbon industrial cluster by 2030. The Government is looking for a cluster that can deliver, setting the standard for the rest of the nation. HyNet is the country’s leading hydrogen and carbon capture project and this backing from Government takes us a step closer to meeting that challenge.

“We are at the forefront of UK manufacturing and home to a concentration of energy-intensive users. With the current uncertainty around Brexit, it’s even more important for us to find ways to decarbonise industry and secure and grow the thousands of jobs that our region depends on, supporting the Local Industrial Strategies being developed across the North West.”

£500,000 has been awarded under the Department of Business, Energy and Industrial Strategy (BEIS) Hydrogen Supply Programme to a consortium led by Progressive Energy and involving Johnson Matthey and SNC-Lavalin, to develop a hydrogen production facility at Essar’s oil refinery at Stanlow, Cheshire. The plant could displace around 2% of the UK’s industrial demand for natural gas, saving 600,000 tonnes of carbon dioxide a year.

A further £300,000 has been awarded under BEIS’ Industrial Fuel Switching programme to a consortium comprising Progressive Energy and several major industrial gas users in the North West, including Pilkington UK Ltd. The feasibility project could see several major industrial plants converted to hydrogen which would be supplied by pipelines from the production plant at Stanlow.