Essar Energy Transition (EET) on Friday announced setting up of Europe’s first hydrogen-ready combined heat and power plant (CHP) at its Stanlow refinery in Ellesmere Port in the UK. The building of the power plant is a key part of EET’s overall USD 3 billion of energy transition initiatives in the North West of England.

The company aims to complete the project, EET Hydrogen Power in 2027, it said in a statement.

The investment will support EET Fuels’ ambition to become the lowest carbon process refinery, globally and EET Hydrogen’s ambition to become the leading low carbon hydrogen producer in the UK. It will also provide low carbon power to other industrial users in the region to support their decarbonisation targets.

EET Hydrogen Power will become an independent vertical under EET.

The project will be developed over two phases to reach a capacity of 125 MW and reducing 740,000 tonne of carbon dioxide per annum.

The new plant will replace Stanlow’s existing boiler units, which generate approximately 50MW of power for the refinery operations. The plant is integral to the decarbonisation of operations at EET Fuels’ Stanlow refinery, which plans to cut total emissions by 95 per cent by 2030, to become the world’s lowest carbon refinery.

Tony Fountain, Managing Partner of Essar Energy Transition, commented: “Launching EET Hydrogen Power shows the progress that EET is making in delivering against its commitment to put the UK at the forefront of low carbon energy. EET Hydrogen Power helps bring this commitment to life and demonstrates our intention to globally showcase the pathway to decarbonising vital high emitting industries.”