Vertex Hydrogen, Pilkington UK sign Heads of Terms deal for hydrogen offtake

LONDON (ICIS)–Vertex Hydrogen and Pilkington UK have signed a Heads of Terms agreement for low carbon hydrogen supply within the HyNet North West cluster, a press release from Vertex Hydrogen showed on 4 January.

The deal will see Vertex supply Pilkington UK, a glass manufacturer based in St Helens, with low carbon hydrogen.

Pilkington, according to the press release, completed the first two global trials of hydrogen being fired in a glass furnace.

Vertex, a joint venture between Essar Oil UK and Progressive Energy, will produce the low carbon hydrogen at the Stanlow Manufacturing Complex located in Ellesmere Port before being transported via underground pipelines to industrial customers.

The hydrogen produced at Stanlow will be via an autothermal reforming process with carbon capture technology.

Data from ICIS showed that UK ATR breakeven costs for production within 2024 stood at £4.51/kg on 10 January after having been above the £5/kg mark for the bulk of the second half of 2022.