Essar Group to invest $3.6bn to accelerate energy transition in UK and India
Indian conglomerate Essar Group has launched a new entity called Essar Energy Transition (EET) to accelerate the energy transition in the UK and India.
Essar Energy Transition (EET) is anticipated to spend $3.6 billion on developing an array of low carbon energy transition projects in the next five years. Of this, the company will invest $2.4 billion across its location at Stanlow, UK, while $1.2 billion will be spent in India.
The $2.4 billion investment program includes blue and green hydrogen, ammonia, biofuels, decarbonization, and infrastructure projects in the UK to reduce approximately 3.5 million tonnes of carbon emission and around 20% of the total industrial emissions in North West England.
Essar Group to invest $3.6bn to accelerate energy transition in UK and India
Prashant Ruia — Essar Capital Director 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.”
As part of Essar Energy Transition’s decarbonization plans, the Stanlow refinery is estimated to avoid 75% carbon emissions before the end of this decade.
Tony Fountain — Essar Energy Transition Managing Partner said: “EET’s ambitious investment plans will not only help deliver the UK’s net zero ambitions and the enormous environmental benefits therein, but will also secure the long term sustainable future for Stanlow, protecting and creating new highly skilled job opportunities at the heart of the Northern Powerhouse economy for generations to come.”
The remaining $1.2 billion investment will focus on developing a global supply hub for low carbon fuels, including green hydrogen and green ammonia, in India.
Essar Energy Transition will include Essar Oil UK, Vertex Hydrogen, EET Biofuels, and EET Future Energy.
In 2021, the UK government selected Essar Group’s Stanlow site as one of only two hydrogen clusters in the country as a part of its low carbon and hydrogen energy project HyNet.