Essar plans to build two blue hydrogen plants. Produced from natural gas and steam, blue hydrogen is not emissions-free, but its carbon emissions are captured, stored and used in other applications.
Deepak Maheshwari, Essar's UK chief executive, said the hydrogen purchase deal will help to "de-risk the project while also securing supply for our production processes into the future and thereby reducing our carbon footprint".
Vertex Hydrogen, a joint venture between Essar and Progressive Energy, is setting up a large-scale blue hydrogen production hub in the UK.
(Reporting by Nidhi Verma; Editing by David Goodman)
