The Stanlow oil refinery, near the River Mersey, is the epicenter of a £3bn hydrogen hub. Its owner, Essar Oil UK, will use the infrastructure to become the world’s first decarbonized refinery.
Stanlow could be the “world’s first decarbonized refinery”.
A decarbonized oil refinery may seem contradictory, but Richard Holden, project manager at Stanlow, sees no contradiction. Stanlow produces around 2 million tonnes ofCO2 per year, making it the region’s largest emitter and a prime candidate for decarbonization.
“The definition of a decarbonized refinery means the stopping of all these CO2 emissions into the atmosphere. It actually goes further than net zero, because net zero implies that emissions continue to be produced and offset. Our goal is to reduce these emissions to less than 10% of their current level “, Richard explained in an interview.
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HyNet: the center of the project
Stanlow is the center of the government-backed HyNet hydrogen project. This multi-partner project will produce hydrogen for large industrial customers such as Pilkington, Unilever and Encirc. Infrastructure costs for the project are in the order of £18 billion, and operating costs up to 2050 are estimated at £30 billion. HyNet is expected to make a major contribution to the UK’s net carbon emissions targets.
The Stanlow production center will cost up to £3 billion and will include two initial hydrogen production facilities built by EET Hydrogen, a joint venture between Essar Oil UK and Progressive Energy. The first installation, HPP1, will start operating in 2027 and produce 350 MW of hydrogen, followed by HPP2 which will produce 1 GW of hydrogen.
Carbon capture and storage
Stanlow will also be the site of a carbon capture plant, essential to the HyNet project. The HPP1 and HPP2 hydrogen plants will produce hydrogen by burning natural gas, a fossil fuel that generates carbon dioxide emissions.CO2. However, theCO2 generated will be captured and transported to Liverpool Bay, where it will be stored in depleted gas fields.
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Despite skepticism about the viability of carbon capture and storage (CCS), Richard Holden firmly believes in its success. The 97% carbon capture target is ambitious, but, as Richard says, “ this has never been attempted on this scale “.
History and transformation of Stanlow
Founded by Shell in 1924 as a bitumen factory, Stanlow was transformed into a large refinery in the 1970s. In 2011, Shell sold the refinery to Indian conglomerate Essar Group, which invested more than £700 million to make it profitable. Despite the financial difficulties caused by the COVID-19 pandemic, the refinery has returned to strength with an annual turnover of more than £9 billion.
The energy future
The transition to a lower-carbon future is the biggest challenge the energy industry has ever faced. Richard Holden sees a future where companies like Essar will provide cleaner, essential fuels for decades to come. Essar plans to not only decarbonize Stanlow, but also create a reserve of future fuels at the site.
Hydrogen: a clean fuel
Hydrogen, the most abundant element in the universe, has enormous potential as a clean fuel source. Hydrogen production is color-coded based on the method used: gray (dirtiest, produced by burning fossil fuels), blue (with CO2 capture), and green (produced with electricity from sources renewable).
The HyNet project will primarily focus on blue hydrogen due to its current viability. Richard Holden highlights that while green hydrogen is the future, its scalability and affordability are still under development.
Challenges and opportunities
The success of the HyNet project could mark a turning point in the UK’s ambitions to achieve net zero. Richard Holden is confident that HyNet will achieve its carbon capture targets and contribute significantly to the supply of low carbon fuels, providing a competitive advantage to Stanlow and supporting economic growth in the region.
For more information: www.eetfuels.com – www.stanlowterminals.co.uk