Essar Group, invested in energy, metals and mining, infrastructure, and technology sectors, has announced the formation of Essar Energy Transition (EET) to drive energy transition in the UK and India.
According to Essar, 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 said that EET’s investment programme will play a major role in accelerating the UK’s low-carbon transformation.
Furthermore, the investments, across a range of hydrogen production technologies, decarbonisation, biofuels (road and aviation), and infrastructure projects, are expected to contribute to North West England becoming one of the leading post-carbon industrial clusters in Europe.
EET believes that 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.
According to Essar, EET’s strategy is founded on the fact that hydrogen and biofuels are fast becoming globally significant fuels of the future and that the UK is positioned strongly to spearhead the rapid growth of the European low-carbon fuels market.
It noted that, as a part of the HyNet cluster, Essar’s Stanlow site already plays a prominent role in the UK’s energy transition planning framework.
The Stanlow refinery itself is expected to achieve a 75% reduction in carbon emissions before the end of this decade as part of EET’s decarbonisation plans.
Prashant Ruia, Director of 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 doing so, it will provide a blueprint for how traditional industries globally can be successfully transformed into hubs for the production of future energies.”
Tony Fountain, Managing Partner of Essar Energy Transition, stated: “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.”
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.