Essar Group will invest $1.2 billion in India in developing a range of low-carbon energy transition projects over the next five years. This is the first major investment announced by the Group after it went into a major debt reduction exercise under which it sold off its steel and oil units.
The Group, which is invested in energy, metals and mining, infrastructure, and technology sectors, today announced the formation of Essar Energy Transition (EET).
EET plans to invest a total of $3.6 billion in developing a range of low-carbon energy transition projects over the next five years, of which $2.4 billion will be invested across its site at Stanlow, between Liverpool and Manchester, and $1.2 billion in India.
EET will include Essar Oil UK, the company’s refining and marketing business in North West England; Vertex Hydrogen, which is developing 1 gigawatt (GW) of blue hydrogen for the UK market with follow-on capacity set to reach 3.8GW; and EET Future Energy, which is developing 1 GW of green ammonia in India, targeted at UK and international markets.
EET will also include Stanlow Terminals Ltd, which is developing enabling storage and pipeline infrastructure; and EET Biofuels, which is investing in developing 1 MT of low carbon biofuels.
‘Investing in forward-looking assets’
“The launch of EET heralds Essar’s repositioning for growth and resurgence. Essar is now investing in new forward-looking assets with modern, efficient, and ESG-compliant technologies to last for several decades,” said a press statement.
It added, “Other sustainability investments planned by the Essar Group beyond EET include the creation of an LNG value chain in India, including LNG truck manufacturing and LNG fuel stations, setting up a pellet plant in Odisha, in eastern India and a 4-million tonnes per annum green steel complex at Ras-Al-Khair, Saudi Arabia.”
EET will also invest in developing a cost-efficient global supply hub for low-carbon fuels in India, including green hydrogen and green ammonia. Ammonia will be shipped from India to the UK, Europe, and globally to meet expanding market demand for green hydrogen.
The company said, “EET’s investment in India will help deliver on the country’s emerging hydrogen ambition. The Indian government’s supportive regulatory framework is designed to help position the country as a leading global hub of green hydrogen production and exports, as set out in its National Green Hydrogen Mission, approved by the Indian government on January 4, 2023.”
Prashant Ruia, Director, Essar Capital said, “The launch of EET is a major milestone in Essar’s long-standing commitment to put the UK at the forefront of low carbon energy. We are excited about the opportunity to drive the UK’s energy transition by producing low-carbon future fuels which will help eliminate around 20 per cent of the industrial carbon dioxide in Northwest England. In doing so, it will provide a blueprint for how traditional industries globally can be successfully transformed into hubs for the production of future energies.”