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Vertex Hydrogen has signed a 'Heads of Terms' offtake agreement for over 200 megawatts of low carbon hydrogen with Northwich-based Tata Chemicals Europe (TCE).

TCE is one of Europe's leading producers of sodium carbonate, salt, sodium bicarbonate, and other products used in the manufacture of food and animal feed, glass, detergents, chemicals and several other industry applications.

In June 2022, Tata opened the UK's first industrial scale carbon capture and usage plant. The 20 million pounds investment captures 40,000 tonnes of carbon dioxide each year - the equivalent to taking over 20,000 cars off the road.

Under the new offtake agreement, Vertex, part of the Essar Group, 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.

Joe Seifert, CEO of Vertex Hydrogen said: "We are thrilled to sign these Heads of Terms with TATA Chemicals Europe, as an industry leader driving tangible change to reduce emissions. This agreement marks another major step forward in the North West's energy transition, as Vertex continues to help build the UK's low carbon energy future."

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 said it is proud to be helping the UK lead the development of low carbon hydrogen production as an integral part of HyNet - the UK's leading industrial decarbonisation cluster. It will help to solve the urgent need to drastically reduce carbon emissions in its manufacturing sector - securing and growing vital industry.

It is:

-- Delivering an initial 1,000 megawatts of low carbon hydrogen capacity - enough to provide the fuel consumed by a city the size of Liverpool;

-- Capturing 1.8 million tonnes of carbon dioxide every year at full capacity - equivalent to taking 750,000 cars off the roads;

-- Investing around 1 billion pounds in the North West of the UK and facilitating the investment of a further 1 billion pounds or more of associated infrastructure;

-- Playing a leading role in kickstarting the UK low carbon, large scale hydrogen market