EET Hydrogen appoints contractor to build first phase of multi-billion pound hydrogen production and carbon capture hub close to the River Mersey. Tony McDonough reports

Work on the construction of the first phase of a multi-billion pound hydrogen production and carbon capture hub close to the River Mersey has moved a step closer.

EET Hydrogen, a division of fuels giant Essar, has signed an engineering, procurement and construction deal with ENKA, a global engineering and construction firm headquartered in Istanbul in Turkey.

Phase one of the project – HPP1 – will see the construction of a hydrogen plant at the Stanlow oil refinery in Ellesmere Port that will have a production capacity of 350MW and will capture around 600,000 tonnes of CO2 a year.

HPP2 will follow later and will add a further 700MW of production capacity. The project secured planning consent from Cheshire West and Chester Council in January 2024. 

This facility will form the nerve centre of the wider HyNet consortium, which aims to supply 4GW of hydrogen to industrial customers across the North West. In October 2024 HyNet, and a similar project in the North East secured £22bn backing from the Government over 25 years.

Joe Seifert, chief executive of EET Hydrogen, said: “Following a highly competitive tender process, we are excited to announce this critical contract with ENKA.

“Having been awarded over 580 contracts in 57 countries, ENKA has an excellent track record in delivering complex projects such as HPP1.”

Hydrogen produced by HyNet will be so-called ‘blue hydrogen’. This is produced by burning natural gas which emits CO2, a major contributor to climate change.

However, instead of the CO2 being released into the atmosphere it will be captured by a facility at Stanlow. Italian oil producer Eni will build a pipeline to carry the captured CO2 to be stored in porous rock in depleted gas fields under Liverpool Bay.

READ MORE: HyNet hydrogen & CCS… everything you need to know

There remains significant scepticism about the viability of carbon capture and storage. There are some who believe it simply won’t work and that it is simply a ruse to prolong the use of fossil fuels.

Hydrogen is the most abundant element in the universe. Its potential as a clean source of fuel is immense. The snag is it has to be separated from other elements and that is an energy-intensive process, however you do it.

Some experts question whether projects such as HyNet can achieve the 95% capture rate required to meet stringent Government rules. Hydrogen is set to make a significant contribution to the UK’s net zero target – so the stakes are high.

HyNet is also conducting small pilot schemes to produce ‘green hydrogen’. This uses electricity produced from a renewable source, such as wind or solar, which is then fed through a machine called an electrolyzer. This separates the hydrogen atoms out in water.

From a climate change point of view this is the optimal method for producing hydrogen. However, while its development is progressing, it is a long way from being available or affordable at scale. HyNet’s argument is that ‘blue’ is scalable now.

Hakan Kozan, member of the executive committee at ENKA, added “We are thrilled to partner with EET Hydrogen on the HPP1 project, a transformative initiative that will play a key role in advancing the UK’s low carbon hydrogen industry.”