INEOS Group (INEOS) has announced plans to construct a low-carbon hydrogen manufacturing plant, and has invited contractors to submit designs for the project.
The plant will boost the green transition plans at its refinery and petrochemicals centre in Grangemouth site, where the British chemicals company has already committed over £500m on active projects.
This includes investment in a new energy plant which will aim to reduce CO2 emissions by 150,000 tonnes per annum, and is set for commission in late 2023.
The cost and scope of the plans remains undisclosed.
The group argues that access to locally produced hydrogen will have benefits for assets at its Grangemouth site, such as fuelling the existing combined heat and power plant, the KG ethylene plant and assets in the Petroineos Refinery.
In excess of one million tonnes per year of CO2 from the hydrogen plant will be sent directly offshore through existing gas pipelines to be permanently stored in rock formations deep below the North Sea.
The scope of design is also planned to provide capability to link the hydrogen production to third parties in the local area to support development of a local hydrogen hub.
Explaining the value of the project, Stuart Collings, chief executive at INEOS UK, said: “This will see the displacement of hydrocarbon fuels used at Grangemouth, like natural gas, with clean, low carbon hydrogen to power our processes and manufacture vital materials used across a wide range of sectors.”
Andrew Gardner, chief executive and chairman of the Grangemouth site, added: “This is an exciting development and an important step forward for our site. We are determined to reduce our own emissions to net zero by 2045, create products that will help others reduce their emissions and play a leading role in a clean hydrogen revolution”