Essar Oil UK plans to construct a carbon capture and storage (CCS) facility at its Stanlow refinery in the industrialised area of Ellesmere Port, Cheshire, in the UK, with an investment of £360m ($432m).

The investment forms part of the firm’s wider plan to invest over £1bn in energy efficiency, fuel-switching, and carbon capture initiatives to decarbonise its production processes by 2030.

Planned for completion in 2027, the CCS plant is expected to eliminate approximately 0.81 million tonnes of CO₂ annually, thus removing nearly 40% of all emissions at the Stanlow refinery.

Essar Oil UK has selected Kent to provide pre-Front-End Engineering Design (FEED) engineering services for the development of the proposed facility.

The facility will be equipped to capture the CO₂ emitted from full-residue fluidised catalytic cracking units at the Stanlow refinery. 

The captured gas will then be permanently sequestered into depleted offshore gas fields in Liverpool Bay.

Essar Oil UK CEO Deepak Maheshwari 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. 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.”