New Delhi: Essar Energy Transition, the Essar Group entity driving low-carbon projects worth $3.6 billion in the United Kingdom and India, said on Friday it will build Europe's first power plant powered by 100 percent hydrogen at its Stanlow refinery in the United Kingdom. by 2027.

Hydrogen-powered energy is an essential part of industry decarbonisation and the UK's electricity system is essential to reducing emissions, in line with government targets.

Without giving details about the investment involved in the construction of the project, the firm in a statement said it is announcing "the launch of EET Hydrogen Power, Europe's first hydrogen-ready combined heat and power (CHP) plant to be built in its Stanlow refinery with the aim of completing construction in 2027.

The plant will be based at EET Fuels' Stanlow refinery.

“The investment will support EET Fuels’ ambition to become the world’s leading low-carbon process refiner and EET Hydrogen’s ambition to become the UK’s leading producer of low-carbon hydrogen.

"It will also provide low-carbon power to other industrial users in the region to support their decarbonisation goals. EET Hydrogen Power will become an independent vertical under EET," it said.

EET Hydrogen Power will be developed in two phases to reach a capacity of 125 MW of power with 6,000 tonnes per day of steam, and the hydrogen replacing hydrocarbons will generate a reduction of 740,000 tonnes of carbon dioxide per year.

The new plant will replace Stanlow's existing boiler units, which currently generate around 50 MW of power for the refinery's operations. The plant is integral to the decarbonisation of operations at EET Fuels' Stanlow refinery, which plans to reduce total emissions by 95 per cent by 2030, to become the world's lowest-carbon refinery.

EET Hydrogen Power is a key infrastructure project, supporting the decarbonisation plans of the wider HyNet industrial group, as well as forming a plan for future industrial and energy decarbonisation.

The investment also responds to EET's contribution to supporting and growing highly skilled employment in the North West.

"Investment in the construction of Europe's first hydrogen-ready power station is a key part of EET's overall $3 billion energy transition initiatives in the northwest of England," the statement said.

EET includes EET Hydrogen Power, EET Fuels (owner of the Stanlow refinery), EET Hydrogen (which is developing over 1.35 gigawatts (GW) of blue and green hydrogen capacity for the UK market, with a capacity ambition 4GW follow-on) and Stanlow Terminals Ltd, the UK's largest independent bulk liquid storage terminal (which is developing transport and storage infrastructure for biofuels and new energy).

Tony Fountain, managing partner of Essar Energy Transition, said: "The launch of EET Hydrogen Power shows the progress Essar Energy Transition is making in delivering on its commitment to putting the UK at the forefront of low carbon energy. EET “Hydrogen Power helps bring this commitment to life and demonstrates our intention to globally show the way to decarbonise vital high-emitting industries.”

Rob Wallace, chief executive of EET Hydrogen Power, said: “We have bold ambitions for Stanlow to become a low-carbon transition hub at the heart of the HyNet industry group.”

EET Hydrogen Power will be Europe's first 100% hydrogen-ready gas turbine plant to be supplied with low-carbon hydrogen from EET Hydrogen. This project will generate significant benefits by contributing to regional emissions reduction goals, Wallace added.