Essar to invest $3.6 billion in energy transition in the UK and India

Essar has formed Essar Energy Transition (EET) that will focus on investing in hydrogen, decarbonization, new energy infrastructure, and biofuels. EET plans to invest $3.6 billion in developing low-carbon energy transition projects in the UK and India over the next five years.

February 27, 2023 Uma Gupta

Image: EERE - US Department of Energy, Hydrogen Program/Wikimedia Commons

Essar Group has repositioned itself for growth and resurgence by forming Essar Energy Transition (EET). EET will focus on hydrogen, decarbonization, new energy infrastructure, and biofuels, creating a fully integrated energy transition hub at Stanlow in the UK.

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 in the UK and $1.2 billion in India.

EET will include Essar’s operating entities such as Essar Oil UK, the company’s refining and marketing business in North West England; Vertex Hydrogen, which is developing 1 GW of blue hydrogen for the UK market, with follow-on capacity set to reach 3.8 GW; EET Future Energy, which is developing 1 GW of green ammonia in India, targeted at UK and international markets; 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.

“The investments in the UK, across a range of hydrogen production technologies, decarbonization, biofuels (road and aviation), and infrastructure projects, will contribute to North West England quickly becoming one of the leading post-carbon industrial clusters in Europe. EET believes that these investments will support the reduction of around 3.5 million tonnes of carbon dioxide, about 20% of the total industrial emissions in North West England,” stated the company.

The Stanlow refinery in the UK will achieve a 75% reduction in carbon emissions before the end of this decade as part of EET’s decarbonization plans.

In India, EET will invest $1.2 billion in developing a cost-efficient global supply hub for low-carbon fuels, including green hydrogen and green ammonia. Ammonia will be shipped from India to the UK, Europe, and globally to meet the expanding market demand for green hydrogen, stated Essar.

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