In the UK, Vertex Hydrogen Ltd, a joint venture between Essar Group and Progressive Energy Ltd, developers of HyNet North West industrial decarbonization cluster, has announced that it has signed offtake agreements to supply 1 GW of hydrogen to decarbonize leading UK industries.
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Vertex Hydrogen 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.
In its initial phases, it will have 1 GW of hydrogen capacity and capture some 1.8 million tonnes of carbon dioxide (CO2) per annum.
Vertex has now signed agreements to supply over 1 GW of low-carbon hydrogen to leading industrial names in the region.
This milestone reflects Vertex’s status as the largest and most advanced low-carbon hydrogen hub in the UK.
We have always said that Vertex is demand-led from leading industrial companies and we have now signed agreements for over 1 000 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, said Joe Seifert, CEO of Vertex Hydrogen.
This secures the entire initial hydrogen production capacity of Vertex and enables vital hydrogen infrastructure investments in the region.
We warmly welcome the announcement that Vertex has signed agreements for over 1 000 MW of low-carbon hydrogen, which is a major step in decarbonizing 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, said Darren Elsom, Director of Hydrogen Operations at Cadent.
By 2030, Vertex expects to deliver nearly 4 GW of low-carbon hydrogen – 40 percent of the UK Government’s national target.
Securing over 1 000 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 decarbonization, and infrastructure leveraging our infrastructure, expertise, capital, and desire to be a world leader in decarbonization, commented Prashant Ruia, from Essar Group.
One of four UK hydrogen clusters
The organization is investing an expected GBP 1 billion (≈ EUR 1.13 billion) in the UK’s largest industrial region (the North-West) to enable businesses to switch from fossil fuels to low-carbon energy, helping to secure and grow vital industries and jobs and unlocking billions of pounds of related investment.
An integral part of HyNet, one of two of the UK Government’s Track 1 clusters for industrial decarbonization that was included in the UK Government’s Plan for Growth, Vertex has been selected as one of four hydrogen projects to proceed to the due diligence phase in the Phase-2 Cluster Sequencing Process by the UK Government.
The project will see over GBP 2 billion (≈ EUR 2.26 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.
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 decarbonize 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, said Jeff Ovens, Managing Director of Fulcrum BioEnergy.