Essar Group to Invest $3.6 Billion in Energy Transition in UK, India

Oracle Power & China's CET Sign MoU to Set Up Renewable Projects With Battery Storage in Pakistan

Mumbai headquartered Essar Group has formed the Essar Energy Transition (EET) with the objective to invest a total of $3.6 billion in developing a range of low carbon energy transition projects over the next five years in India and the United Kingdom.

Essar Group held that EET of the total investment, $2.4 billion will be invested across its site at Stanlow, between Liverpool and Manchester in UK and $1.2 billion in India. Essar Group will create the UK’s leading energy transition hub in North West England.

Essar Group said that EET will imbibe several entities: Essar Oil UK having refining and marketing business in North West England, Vertex Hydrogen developing 1 GW of blue hydrogen, EET Future Energy developing 1 GW of green ammonia in India, Stanlow Terminals Ltd developing enabling storage and pipeline infrastructure and EET Biofuels that delves in low carbon biofuels.

The investment programme of Essar Group will play a major role in accelerating the UK’s low carbon transformation at the heart of the Northern Powerhouse economy.

Essar Group held that the investments, across a range of hydrogen production technologies, decarbonisation, biofuels, and infrastructure projects. The investments will support the reduction of around 3.5 million tonnes of carbon dioxide, around 20% of the total industrial emissions in North West England.

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 and setting up a pellet plant in Odisha, in eastern India.

With regards to India, Essar Group will invest $1.2 billion 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.

EET’s investment in India is expected to help deliver on the country’s emerging hydrogen ambition.

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% of the industrial carbon dioxide in Northwest England. “

In 2021, the Essar Power had invested Rs. 300 Crore in a 90 MW solar power plant in Madhya Pradesh marking an entry into the renewable sector.