Government backs HyNet North West clean energy project

Updated by October ,26, 2021

HyNet North West has been given the go-ahead to begin converting natural gas into low carbon hydrogen from 2025, for distribution via a new pipeline network.

It will supply industry, fuel buses, trains and HGVs, generate electricity and heat homes and hospitals across Cheshire, Merseyside, Greater Manchester and North Wales.

Carbon dioxide created during the process will be safely captured and stored offshore in the Liverpool Bay gas fields.

Greg Hands MP, Minister of State for Energy, Clean Growth and Climate Change, today (October 19) announced to parliament that HyNet North West will be one of two ‘Track One’ projects on the UK’s Carbon Capture, Usage and Storage (CCUS) Cluster Sequencing Process.

It means the infrastructure in the North West will be progressed as one of two industrial clusters by the mid-2020s – and four by 2030 at the latest – and be backed by a share of the £1 billion Infrastructure Fund to support industry deploying CCUS at pace.

Developing the two hydrogen production hubs at Essar's Stanlow site is expected to cost in the region of £750m.

A planning application for the plants was submitted last week to Cheshire West and Chester Council.

Ged Barlow, Chief Executive of Net Zero North West: "HyNet is vitally important not just to the decarbonisation of the North West but to the whole of the UK, so we wholeheartedly welcome the Government’s decision to back the project as a track 1 cluster.

"This announcement shows how the North West is uniquely positioned to help drive the UK’s transition to net zero. As our recent Net Zero North West manifesto made clear, we are not just talking about the opportunity we have a clear plan for how we can be the UK’s first net zero region.

"With an unrivalled mix of low carbon energy projects already happening we have all the ingredients to underpin a long term, resilient net zero energy system in the UK."

Professor Joe Howe, Chair of North West Hydrogen Alliance and Executive Director, Thornton Research Institute at the University of Chester: "It’s incredible news that HyNet in the North West of England has been confirmed as a track one carbon capture cluster by the Government.

"The region not only has one of the lowest cost and deliverable carbon capture solutions, but has made significant progress in developing plans for a full hydrogen system to generate, store and distribute hydrogen to our job-creating companies in our industrial heartland.

"The Government’s decision will drive essential investment to deliver carbon capture facilities in the region – a key component of unleashing the hydrogen economy in the region and the UK.

"It is just the moment we have all been waiting for and, crucially, will keep up the pace to bring the first stages of the HyNet project to fruition by the mid-2020s.

"With COP26 on the horizon and the spotlight on practical steps to reach net zero carbon emissions, this is excellent progress. It will provide long-term confidence to big employers in the region and investors that, as well as the North West being a leading force in the Green Industrial Revolution, hydrogen as a clean source of power and fuel can and will be delivered at a mass scale sooner rather than later."