Three northern Lincolnshire projects have been successful in the first phase roll-out of the government’s Industrial Energy Transformation Fund.
Oil major Phillips 66 has secured more than half a million pounds for its Refuelling the Humber Refinery project as it looks to switch industrial fired heaters from gas to low carbon hydrogen.
In Scunthorpe, coldstore group Magnavale has secured £250,000 towards a £950,000 project to make the food logistics operation as energy efficient as possible by applying next-generation technology to existing infrastructure.
Origen has been awarded £221,000 to conduct a design study that explores the use of lime to remove carbon dioxide from the air - with Singleton Birch's Melton Ross quarry the proposed location. It is also involved in a major project with Tate & Lyle Sugars and Cranfield University at Thames Refinery, in a £768,000 joint venture.
Phillips 66's £1 million feasibility study seeks to remove 400,000 tonnes of carbon dioxide and will play a key part in the larger Zero Humber and Gigastack projects the South Killingholme site is central to.
Phil Gothard, project development lead at Phillips 66 Humber Refinery, said: “This is great news for the region and a further endorsement for Humber Refinery’s role in the region and UK’s industrial decarbonisation target.
“The project could pave the way to deep decarbonisation of Phillips 66’s industrial fired heaters, while demonstrating the importance of hydrogen for industrial fuel switching as part of the UK’s Net Zero future.
“This project supports Phillips 66’s long-term ‘Refinery of the Future’ vision, which involves deep decarbonisation of the refinery and development of a UK electric vehicle battery supply chain.
“Hydrogen is a critical part of industrial decarbonisation and was recognised by the Prime Minister in his 10-point plan for a green industrial revolution.”
In the same sector, Essar Oil (UK) Ltd will receive a grant of more than £7 million towards the upgrade of a distillation unit with a new, net-zero ready furnace at Stanlow in Ellesmere Port.
UKPIA director-general, Stephen Marcos Jones, said: "UKPIA welcomes this announcement of funding for hydrogen as a low carbon fuel source.
"There are multiple opportunities for hydrogen to decarbonise parts of the economy, from transport to home heating and especially in decarbonising heavy manufacturing processes – clean hydrogen technology is likely to play an important role.
"The instrumental role of UKPIA members in decarbonisation projects, especially as some of the largest producers and users of hydrogen in the UK, should not be underplayed. The sector is a committed and important partner in reaching Net-Zero.
"UKPIA looks forward to continued close engagement with governments on hydrogen opportunities for the downstream sector, so that an enabling policy framework can continue to be developed and ensure the UK’s Net-Zero goal is met efficiently and in a way that is economically sustainable.”
In Yorkshire, Saint-Gobain Glass at Eggborough, will receive more than £1.4m to deliver a new flat glass production furnace to improve the efficiency and William Cook Holdings Ltd of Sheffield, will benefit from more than £38,000 to improve energy efficiency and reduce its environmental footprint by recovering waste heat from its furnaces to produce electricity.
A further £4.5m is being invested to manage and restore peatlands to maximise their greenhouse gas removal potential at farmland near Doncaster, and at upland sites in the South Pennines and in Pwllpeiran, West Wales.
Energy Minister Anne-Marie Trevelyan, who visited Phillips 66 last week, said: “We are determined to tackle climate change and make it win-win for both our planet and our economy. Today’s major cash boost – targeted at our most polluting industries - will encourage the rapid development of the technologies we need to reign in our emissions and transition to a green economy, one that reduces costs for business, boosts investment and create jobs.
“Just six months ago, the Prime Minister set out a clear 10-point plan for creating and supporting up to 250,000 British jobs as we level up and build back greener from the pandemic. Today we’re boosting our armoury for the fight against climate change and backing innovators and businesses to create green jobs right across the United Kingdom.”
