The Stanlow Refinery has received over £7m from the Government to install a new furnace in the crude distillation unit able to run on a 100% hydrogen fuel source.
Site owner Essar said the new project forms part of its plans to decarbonise the North West operation, and has secured a £7.2m grant from the Department for Business' (BEIS) Industrial Energy Transformation Fund.
The funds will now be invested in the project set to be the UK’s first refinery-based furnace able to be fuelled entirely by hydrogen.
Once completed and operational, Essar said the net zero ready furnace will reduce Stanlow’s CO2 emissions by 11% per year and deliver "immediate energy efficiency improvements".
The furnace will use hydrogen produced by the HyNet North West project at Stanlow, with the first stage of the initiative set to come on stream in 2025.
Essar's chief operating officer Jon Barden said: “This year has been about beginning to execute the strategy we’ve put in place to decarbonise Stanlow and position the site as a provider of sustainable fuels for the future.
"The investment into CD4, alongside the HyNet and Fulcrum projects, demonstrates our commitment to developing low carbon operations, with the ambition of becoming a net zero site by 2040.
“The funding from BEIS is an endorsement of the steps we’re taking, as well as a signal of the Government’s intent to transform the North West into a clean energy hub supporting jobs and economic growth for years to come.”
Essar said the new furnace is another element in its transition to becoming a low-carbon energy provider.
It will also include the construction of two blue hydrogen production hubs at Stanlow under the HyNet project, set to attract £750m in total investment.
