Inside Essar Oil’s £360m Carbon Capture Plant Deal


Essar Oil UK will construct a £360 million carbon capture plant at its Cheshire refinery. 

Essar oil's £360m carbon capture plant
by Rory ButlerDecember 6, 2022

Engineering firm, Kent plc has been awarded a pre-FEED contract to develop the new facility at Essar’s Stanlow Refinery, in Ellesmere Port. 

The new plant forms part of a more than £1 billion investment the firm is making to significantly decarbonise its production processes by 2030.  

Essar energy transition strategy: 

  • decarbonise Stanlow operations 
  • build a hydrogen future via Vertex Hydrogen and the HyNet consortium 
  • develop green fuels (including SAF) 
  • establish the UK’s largest biofuels storage facility via Stanlow Terminals Limited 

The firm outlined plans for “significant investments” in hydrogen and biofuels, in addition to the new plant.  

It is estimated the finished facility will eliminate 0.81 million tonnes of CO2 per year – the equivalent of 400,000 cars off the road – ridding Stanlow of nearly 40% of all emissions. 

The CO2 emitted from Stanlow Refinery will be permanently sequestered into depleted gas fields under the sea in Liverpool Bay, as part of the HyNet cluster. 

“This is a massive undertaking, but it is a journey we are fully committed to,” said Deepak Maheshwari, CEO of Essar Oil UK. “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.” 

The new plant is set for completion in 2027. 

Essar was contacted for further comment on its proposed client list.  

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