India's Essar Commits US$5.8 billion to U.K. Energy Transition

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The company behind the U.K.'s first large scale low-carbon hydrogen production plant at Stanlow refinery has committed to spending £4.3 billion (US$5.8 billion) on low-carbon energy transition projects in the U.K..

India's Essar has committed to spending £4.3 billion (US$5.8 billion) on low-carbon energy transition projects in the U.K.

The bulk of the investment will go into planned projects at the 200,000 barrel per day (bpd) Stanlow Refinery near Liverpool, where it is planning to construct the country's first large-scale low-carbon hydrogen production plant. According to Industrial Info Resources data there are 38 projects at Stanlow worth US$2.2 billion in investment. 

Celebrating 15 Years

Essar subsidiary, Essar Energy Transition (EET), announced the investment pledge as part of its celebration of 15 years of ownership of Stanlow, which it acquired from Shell in 2011. To date the company has spent around £1 billion (US$1.3 billion) on modernising the facility and said it is close to reaching a final investment decision (FID) on another £1 billion (US$1.3 billion) of spending. Prashant Ruia, Chairman of Essar Energy Transition (EET), commented: "We are proud to mark 15 years since acquiring Stanlow. It remains a privilege to steward this critical asset, and we remain committed to its future. Our £4.3 billion (US$5.8 billion) investment pipeline represents a significant growth opportunity for the U.K., supporting the country's energy transition, generating massive long-term economic value, and creating thousands of highly skilled jobs built on the site's proud industrial heritage." The company recently completed a £100 million (US$130 million) refinery turnaround increasing throughput by approximately 8% and it has also commissioned the U.K.'s first hydrogen-ready refinery furnace following a £70.9 million (US$100 million) investment. 

Transforming Stanlow Refinery

Stanlow is a strategic refinery for the U.K., being one of only four currently operating after the closure of the Grangemouth and Lindsey refineries in 2025. The others are Fawley in Hampshire (ExxonMobil), Humber in Lincolnshire (Phillips 66) and Pembroke in Wales (Valero). Stanlow produces approximately 16% of the country's road fuels. Other ongoing and planned projects at the refinery include a hydrogen-fuelled power plant, green hydrogen production plant, carbon capture and storage infrastructure, and a methanol-to-jet sustainable aviation fuel facility. Hydrogen produced will be supplied to the Stanlow refinery and other industrial customers via the HyNet network. 

What is Hynet?

HyNet is one of the U.K. 's leading industrial decarbonisation projects for decarbonising heavy industry in north west England and Wales. It comprises hydrogen production, the hydrogen transport network via underground pipeline, hydrogen storage and CO2 transport & storage. HyNet's hydrogen network is being developed by gas supply company, Cadent, and is the first of its kind in the U.K. HyNet partner INEOS Inovyn is repurposing salt caverns in the Northwich area of Cheshire, which currently store natural gas, to store 35,000 tonnes hydrogen, which can be used to manage peaks and troughs in energy demand. Repurposed underground pipes, will transport captured CO2 from major industry into almost-empty gas fields under the sea in Liverpool Bay. Industrial Info Resources is tracking project reports40 Hynet-related projects worth US$2.3 billion in investment. 

Key Takeaways

• India's Essar has committed to spending £4.3 billion (US$5.8 billion) on low-carbon energy transition projects in the U.K.
• Industrial Info Resources is tracking 38 projects at Stanlow worth US$2.2 billion in investment. 
• Stanlow Refinery sits at the heart of the Hynet initiative, one of the U.K. 's leading industrial projects for decarbonising heavy industry in north-west England and Wales.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).