Essar Unveils £4.3bn Stanlow Hydrogen Transition Plan
Essar Group has marked 15 years of ownership of the Stanlow Manufacturing Complex by outlining a £4.3 billion energy transition programme that places hydrogen at the centre of plans to transform the UK refinery into a low-carbon industrial hub.
Since acquiring Stanlow in 2011, Essar has invested approximately £1 billion in modernising the site, upgrading its refining capabilities and maintaining its position as one of Europe’s leading refining assets. The company said the next phase of development will focus on hydrogen production, carbon capture, sustainable aviation fuel and low-carbon power generation.
Owned and operated by Essar Energy Transition Fuels, Stanlow is set to become a major centre for clean energy technologies, with more than £1 billion of the planned investment pipeline approaching final investment decision stage.
The transition strategy includes the development of large-scale low-carbon hydrogen production facilities, hydrogen-ready power generation, carbon capture infrastructure and a sustainable aviation fuel project. Essar aims to use hydrogen to reduce emissions from refinery operations while also supporting wider industrial decarbonisation across the North West of England.
A key part of the plan is the development of two hydrogen production units at Stanlow. The first facility is expected to have a capacity of around 350MW, followed by a larger second unit exceeding 700MW, creating the potential for more than 1GW of hydrogen production capacity.
The hydrogen produced would initially be generated from natural gas combined with carbon capture technology, creating what is commonly known as low-carbon or blue hydrogen. The captured carbon dioxide would be transported through the planned HyNet network for permanent storage.
Essar said hydrogen will help replace natural gas currently used in refinery furnaces and boilers, while also providing a potential energy source for neighbouring industrial businesses including chemicals, manufacturing and other high-energy sectors.
The company has already taken steps towards hydrogen integration by commissioning the UK’s first hydrogen-ready refinery furnace at Stanlow following a £70.9 million investment. The furnace can operate using refinery gases combined with hydrogen and is designed to transition towards higher hydrogen usage as supply becomes available.
Essar estimates the furnace currently reduces carbon emissions by around 16,600 tonnes annually, with potential savings increasing significantly once low-carbon hydrogen becomes available.
Alongside hydrogen production, Essar is exploring the development of a hydrogen-powered energy plant that could provide electricity and steam for Stanlow operations and support future industrial developments at the site.
The company is also assessing opportunities to host next-generation commercial data centres powered by hydrogen-ready energy infrastructure. Stanlow’s existing industrial land, energy connections and location could support future high-demand digital infrastructure, although no specific data-centre projects have been confirmed.
Another major element of the transition programme is the development of a sustainable aviation fuel (SAF) facility. Essar is progressing plans for a methanol-to-jet plant capable of producing more than 200,000 tonnes of sustainable aviation fuel annually.
The proposed SAF facility would use renewable and bio-based methanol feedstocks to produce lower-carbon aviation fuel, helping support the aviation sector’s efforts to reduce emissions. The project has completed early engineering work and is expected to move towards further development decisions in the coming years.
Stanlow remains a critical part of the UK’s existing energy infrastructure, currently supporting transport fuel supply and thousands of jobs across the country. Independent analysis has estimated that the site supports around 5,000 direct, indirect and induced jobs, with supply chain spending of approximately £426 million.
Essar said its investment programme could generate significant long-term economic benefits, including thousands of skilled jobs linked to construction, engineering and energy transition industries.
Prashant Ruia, Chairman of Essar Energy Transition, said Stanlow’s future will be built on combining its established refining expertise with new low-carbon industries.
“We remain committed to Stanlow’s future. Our £4.3 billion investment pipeline represents a significant growth opportunity for the UK, supporting the country’s energy transition, generating long-term economic value and creating thousands of highly skilled jobs,” he said.
The transformation of Stanlow reflects the wider shift taking place across Europe’s industrial sector, as traditional energy assets are being adapted to support hydrogen, carbon capture and cleaner fuel technologies. Essar’s ambition is to turn the refinery into a major energy transition hub while maintaining its role in UK energy security.
