Northwich-based Tata Chemicals Europe on Thursday said that it has signed an offtake agreement with Essar-promoted Vertex Hydrogen for the supply of over 200 megawatts of low-carbon hydrogen. In a statement, Vertex said that under the new deal, it will supply TCE with hydrogen.
Vertex Hydrogen is a joint venture between Essar Oil UK and Progressive Energy, and it is building the UK’s first low-carbon hydrogen production plant.
TCE is one of Europe’s leading producers of sodium carbonate, salt, sodium bicarbonate, and other products used in the manufacturing of food and animal feed, glass, detergents, chemicals, and several other industry applications. The chemicals manufacturer is working towards decarbonising its operations in the UK with a target of achieving “net zero” manufacturing by 2030.
“Under the new offtake agreement, Vertex will supply TCE with hydrogen as the manufacturer continues to decarbonise its operations in the UK with a target of achieving ‘net zero’ manufacturing by 2030,” Vertex said in a statement.
Vertex CEO Joe Seifert said the company is “thrilled to sign these heads of terms with Tata Chemicals Europe, as an industry leader driving tangible change to reduce emissions”.
Martin Ashcroft, Managing Director of Tata Chemicals Europe, said: “We have been supporters of Vertex and the low carbon hydrogen segment as a real opportunity to further reduce emissions at our world-class CHP facility. This agreement marks the next step in our relationship as we continue our journey as a leader in industrial decarbonisation”.
Vertex stated that it is investing around 1 billion pound in the North West of the UK plant that will deliver an initial 1,000 megawatts of low carbon hydrogen capacity – enough to provide the fuel consumed by a city the size of Liverpool. It will capture 1.8 million tonnes of carbon dioxide every year at full capacity – equivalent to taking 7,50,000 cars off the roads.
On the other hand, Tata opened the UK’s first industrial-scale carbon capture and usage plant in June 2022. The 20-million-pound investment captures 40,000 tonnes of carbon dioxide each year, equivalent to taking over 20,000 cars off the road.
(With agency inputs)