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Essar Oil to build £360 million carbon capture facility at Stanlow Refinery

02 December 2022

Essar Oil UK has announced plans to build a £360 million carbon capture plant at its Stanlow refinery in Ellesmere Port, North West England. The company said the plan was in line with its ambition to become a leading low carbon refinery by 2030.

Image: geograph.org.uk / User: David Dixon
Image: geograph.org.uk / User: David Dixon

Announcing its plans, Essar said it is investing over £1 billion into a range of energy efficiency, fuel-switching, and carbon capture initiatives, designed to decarbonise its production processes significantly by 2030 and put Essar at the forefront of the UK’s shift to low carbon energy.

Essar’s energy transition strategy is based on five principles: running the core Stanlow refining processes as efficiently and safely as possible; decarbonising Stanlow’s operations; building a hydrogen future through the launch of Vertex Hydrogen and as a key part of the HyNet consortium; developing green fuels (including Sustainable Aviation Fuels); and establishing the UK’s largest biofuels storage facility through Stanlow Terminals Limited.

Kent plc has been awarded a pre-FEED engineering contract to develop the new carbon capture facility that will take the CO2 emitted from one of Europe’s largest full-Residue Fluidised Catalytic Cracking units, located at the Stanlow refinery. The gas will be permanently sequestered into depleted gas fields under the sea in Liverpool Bay, as part of the HyNet cluster infrastructure in the North West of England.

Once complete in 2027, the plant will eliminate an estimated 0.81 million tons of CO2 per year – the equivalent of taking 400,000 cars off the road, eliminating nearly 40% of all Stanlow emissions. The project has been selected by BEIS as a Phase-2 winner in the CCUS cluster sequencing process earlier this summer, and as such, is currently progressing through the due diligence stage.

Deepak Maheshwari, CEO of Essar Oil UK said: “This new carbon capture plant is the single biggest initiative to decarbonise our processes and a core element to our hugely ambitious decarbonisation strategy. Our ambition is to become a leading low carbon refinery. This is a massive undertaking, but it is a journey we are fully committed to. Not only is it the right environmental thing to do, it will future proof the critical Stanlow refinery for the long term, protecting jobs and industry, while also placing Stanlow at the very centre of the UK’s energy transition.”


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