In establishing this new joint venture, dubbed Vertex Hydrogen, a proposed hydrogen production plant that could generate over 1GW of hydrogen from 2026 will be developed in the UK.

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This could be a crucial development for the UK’s hydrogen economy and could showcase the incentive in investing in the hydrogen market within the British Isles.

Waste fuel gases from Essar Stanlow, and natural gas, will be converted by Vertex Hydrogen into hydrogen, with carbon dioxide safely captured and stored by HyNet partner Eni SpA, underground offshore in Liverpool Bay.

The hydrogen production hub will provide low carbon energy to replace fossil fuels in industry across the HyNet region, as well as heating homes, and fuelling buses, trains and trucks.

The hydrogen produced will, in the first instance, be utilised by Essar to reduce its carbon footprint at the Stanlow Manufacturing Complex.

Vertex will also provide low carbon hydrogen to a wide range of businesses, including companies from the chemicals, ceramics, paper, glass and flexible power generation sectors.

The companies listed by Vertex include Tata Chemicals Europe, Encirc, InterGen, Solvay, Ingevity, Novelis, Glass Futures and Saica Paper who have all expressed interest already.

More widely in the region, companies such as Pilkington also aim to demonstrate the use of hydrogen in their facilities.

Cadent Gas is also developing the UK’s first multi-user hydrogen distribution network within HyNet.

Prashant Ruia, Essar Chairman, said, “Essar is massively committed to investing in energy transition and is building a portfolio of companies in this space.

“Vertex Hydrogen is a central component of that vision, which will be instrumental in helping create a hydrogen future for North West England and North East Wales. This will see over £1bn ($1.35bn) of investment, thereby creating jobs and supporting local communities for decades to come.”

Chris Manson-Whitton, Director at Progressive Energy, said, “As the founding developer of HyNet, we see the launch of Vertex Hydrogen as a key milestone.

“Vertex is central to unlocking the low carbon hydrogen economy, reducing emissions, creating a cleaner world for future generations whilst creating and safeguarding jobs.”