Oil and gas company Essar is investing £45mn ($61mn) in the UK’s first refinery-based furnace capable of running on 100pc hydrogen.

Installation of the furnace at the Stanlow refining complex in northwest England is subject to planning approval but is expected to start this year, with full operation scheduled for 2023.

The furnace will initially run on natural gas but, from 2026, will source its fuel from a blue hydrogen plant under development at Stanlow by Vertex Hydrogen, a joint venture between Essar and technology company Progressive Energy.

The blue hydrogen plant is part of a £1bn investment by Essar over the next five years and forms a central element of the Hynet North West decarbonisation cluster in northwest England. The plant aims to produce a total of 1GW/yr of hydrogen across two units from 2026.

11pc – Additional emissions cuts when running on 100pc hydrogen

The UK government chose Hynet as one of the country’s “track one” low-carbon cluster projects to receive government funding.

“We have hugely ambitious plans for Stanlow and are committed to making it the UK’s first low-carbon refinery. By effecting a significant and rapid transition to hydrogen, we are securing the long-term future of this vitally important national asset while also playing a key role in supporting the UK’s plans for building the low-carbon economy of tomorrow,” says Deepak Maheshwari, CEO of Essar Oil UK.

The new furnace will initially reduce Stanlow’s carbon emissions by 16,600t of CO₂ through a 4pc increase in energy efficiency compared with the existing furnaces at the plant. Emissions will be cut by a further 11pc once it starts running on 100pc hydrogen from 2026. The furnace will also include new burners that emit lower levels of nitrogen oxide. Three existing furnaces at Stanlow will be decommissioned.

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Author: Stuart Penson