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Essar Oil UK to build £360-m carbon unit

Kent has been awarded a pre-FEED engineering contract to develop the facility that will take the CO2 emitted from one of Europe’s largest full-Residue Fluidised Catalytic Cracking units, located at the Stanlow refinery.

Essar Oil UK to build £360-m carbon unit
The project has been selected by UK’s department for business, energy & industrial strategy as a Phase-2 winner in the Carbon Capture, Utilisation and Storage cluster sequencing process earlier this summer.

Essar Oil UK will invest £360 million pounds ($432 million) to build a carbon capture and storage (CCS) facility at its Stanlow refinery, in line to make it a leading low carbon facility by 2030. The construction of the plant is set to start in the first quarter of 2025 and expected to be completed in 2027.

On completion, the plant would eliminate an estimated 0.81 million tonne of carbon di-oxide per year. This is equivalent of taking 400,000 cars off the road and eliminating nearly 40% of all Stanlow emissions, the Essar Group company 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,” Deepak Maheshwari, CEO of Essar Oil UK, said.

“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,” he added.

The project has been selected by UK’s department for business, energy & industrial strategy as a Phase-2 winner in the Carbon Capture, Utilisation and Storage cluster sequencing process earlier this summer.

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Kent has been awarded a pre-FEED engineering contract to develop the 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, it said in a statement.

Essar 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. These would put Essar at the forefront of the UK’s shift to low carbon energy.

Essar’s energy transition strategy is based on running the core Stanlow refining processes as efficiently and safely as possible, decarbonising Stanlow’s operations and building a hydrogen future through the launch of Vertex Hydrogen, among others.

Being a part of the HyNet consortium, the company is also developing green fuels (including sustainable aviation fuels), apart from setting up the UK’s largest biofuels storage facility through Stanlow Terminals.

Essar will achieve its decarbonisations targets through a combination of incremental (energy efficiency and operating improvements) and transformational projects, including the £360 million carbon capture plant, it said.

Since acquiring Stanlow in 2011, Essar has invested $1 billion in margin improvement and other efficiency initiatives at the refinery.

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First published on: 01-12-2022 at 05:30 IST