EET Fuels (the trading name of Essar Oil (UK) Ltd) is pleased to confirm it has successfully attracted new financing facilities demonstrating market confidence in the company’s decarbonisation strategy, market position and strategic importance.
With plans to become the leading low carbon process refinery, through the delivery of a 95% reduction in carbon emissions, and to develop Stanlow into an energy transition hub, including industrial carbon capture, low carbon hydrogen production and Europe’s first hydrogen-fuelled combined heat and power plant, EET Fuels is setting a global benchmark for industrial decarbonisation.
The company has agreed US$350m in re-financing through a combination of a new bank financing and upsizing of existing trade credit financing facilities in this quarter. This follows the announcement in October 2024 of US$650m in financing facilities including a new receivable facility with ABN AMRO Bank and the extension of the pre-existing HCOB and UMTB facility.
The new facilities secured are:
· US$150m facility with African Export-Import Bank (Afreximbank), the Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade; and
· Upsizing of the previously reported US$300m trade credit financing facility with an international oil company, to US$500m.
The new facilities ensure EET Fuels’ is well-placed to deliver on its decarbonisation ambitions by strengthening its balance sheet with stable medium term financing, deepening existing relationships with key trading partners while also establishing relationships in new African markets.
Satish Vasooja, Chief Financial Officer at EET Fuels, said:
“We’re leading the energy transition, and our ambition is to become the world’s first low carbon refinery. This new facility with Afreximbank, further diversifying our sources of finance and establishing new relationships, supports our ongoing transformation and showcases market confidence in our energy transition strategy.”
About EET Fuels
EET Fuels is committed to playing a key role in the decarbonisation of the UK economy, with ambitious plans to build an energy transition cluster in the North West of England.
EET Fuels is transforming for tomorrow and is committed to becoming the UK’s first low-carbon refinery. It is investing US$1.2bn over the next five years to decarbonise its operations and targeting a 95% cut in emissions by 2030 through energy efficiency, carbon capture and fuel switching. This will deliver a 12.5% reduction the North West’s overall regional carbon emissions.
Industrial carbon capture will deliver an annual emissions reduction of ~1 million tonnes of CO2 and hydrogen fuel switching from natural gas to EET Hydrogen low carbon hydrogen as a fuel source will deliver an additional annual emissions reduction of ~1 million tonnes of CO2.
