Capture and Reuse Hydrogen to Reduce Gas Consumption

Eternis Fine Chemicals operates in the fine chemicals sector, producing aroma and fragrance ingredients through chemical manufacturing processes. At its production site in Leek, Staffordshire (UK), several processes generate hydrogen as an unavoidable by-product.

The site relies on natural gas to supply thermal fluid heating required for two major production processes, representing a significant source of Scope 1 greenhouse gas emissions. Historically, the hydrogen produced during these processes was not captured or reused.

This created an opportunity to reduce fossil fuel consumption by capturing and redirecting the hydrogen by-product for on-site thermal heating. By integrating hydrogen into the site’s energy system, the initiative aims to displace natural gas use while improving the circular use of process by-products.

The project forms part of the company’s broader decarbonization strategy, which focuses on energy efficiency, fuel substitution, and the valorization of internal process streams to reduce operational emissions.

Location: Leek, Staffordshire, UK

Eternis has implemented a project to capture hydrogen produced as a byproduct in two existing manufacturing processes and redirect it into a new dual fuel burner installed on an existing thermal fluid heater. This heater supplies process heat to both hydrogen-generating units, creating a closed-loop energy utilisation cycle.

How the system works

1. Hydrogen generation

   1. Two existing production processes generate hydrogen as an intrinsic by product.

2. Hydrogen capture & conditioning

   1. The hydrogen stream is safely captured, conditioned, and prepared for combustion.

3. Dual fuel burner integration

   1. A newly installed burner can operate on hydrogen + natural gas in variable ratios, allowing seamless shifting depending on hydrogen availability.

4. Thermal fluid heater supply

   1. The burner supplies heat to an existing thermal fluid heater, which in turn feeds both hydrogen producing processes — creating a circular use loop.

5. Monitoring & controls

   1. Performance is reviewed in internal project meetings and quarterly discussions with the grant’s Monitoring Officer.

Figure 1: Proposed process flow for the upcycling of wasted hydrogen

Sustainability impact

Climate

The initiative directly reduces Scope 1 emissions by lowering the combustion of natural gas in on-site heating systems.

Expected impact:

• ~2.96 GWh/year reduction in natural gas use

• ~540 tonnes CO₂e/year avoided emissions

Nature

• No identified negative impacts.

• Potential positive impacts from reduced fossil fuel extraction and air pollution.

Social

• Supports long-term employment by strengthening site sustainability.

• Enhances community perception of the Leek site as aligned with UK sustainability goals.

Business impact

Benefits

Improves scope 1 emissions and the sustainability profile of key aroma products

• Reduces energy consumption and fuel cost.

• Increases site resilience by diversifying fuel sources.

• Demonstrates circular resource use, strengthening corporate sustainability positioning.

• Unlocks confidence for future capital investment on site.

Costs

• Capital expenditure covered by Eternis’ CAPEX, with 60% reimbursable via DESNZ grant.

• Operating costs are anticipated to reduce due to lower natural gas consumption.

• CAPEX : 356 K GBP

Typical business profile

• Chemical manufacturing industries that generate hydrogen by products.

• Sites relying on natural gas based thermal heating.

• Firms progressing toward Net Zero and seeking fuel switching opportunities.

Approach

1. Identify hydrogen producing processes

2. Assess hydrogen purity, flow, and safety handling requirements

3. Conduct feasibility and safety studies

4. Design the hydrogen capture and fuel feed system

5. Install dual fuel burner on thermal fluid heater

6. Integrate safety systems, monitoring and controls

7. Commission system and validate hydrogen combustion

8. Optimise hydrogen-to-natural-gas ratio

9. Monitor KPIs and report to funding body (DESNZ)

Stakeholders involved

Project management

• External contractors supply equipment and skilled labour but are managed by Eternis.

• Quarterly performance and compliance reviews with DESNZ* grant Monitoring Officer.

• Project Leads: Eternis engineering leadership (project engineering + operations teams).

• Internal Functions: Operations, maintenance, EHS, finance, project management

* Department for Energy Security and Net Zero in the UK.

Key parameters to consider

• Technology maturity: dual fuel burners are established, hydrogen use in heaters is increasing but still requires careful integration.

• Implementation timeline: 11 months

• Prerequisites: hydrogen conditioning, ATEX compliance, burner compatibility

• Regulations: UK hydrogen safety standards, grant conditions

• Subsidies: DESNZ funding covers 60% of CAPEX

Implementation and operations tips

• Conduct robust Hazard and Operability Study (HAZOP) early

• Ensure burner supplier gas hydrogen combustion expertise

• Maintain close liaison with grant Monitoring Officer

• Build flexible control logic to handle hydrogen variability

• Plan installation to avoid downtime of two dependent processes