Essar Group Commits Rs 30,000 Crore ($3.6 Billion) to Pioneer Green and Blue Hydrogen Projects Across Global Operations

By June 17, 2024 3   min read  (425 words)

June 17, 2024 |

Essar Group

Essar Group, a global conglomerate spanning from metals to infrastructure, is embarking on a transformative journey in the renewable energy sector with a massive investment of Rs 30,000 crore ($3.6 billion) over the next four years. This substantial financial commitment is aimed at establishing a 1 gigawatt green hydrogen plant in Jamnagar, Gujarat, and diversifying into green and blue hydrogen projects across its international facilities.

In Gujarat, Essar plans to deploy 4.5 GW of renewable energy sourced from Essar Renewables, powering an electrolyser to produce green hydrogen. This initiative is intended to produce green molecules directly, a more cost-effective and sustainable approach than converting and transporting green ammonia. “The idea is to create green molecules that can be transported directly rather than green ammonia. Because you carry green ammonia and then you convert it into hydrogen. That cost is very high. So we are trying to build a complex which can make green molecules from hydrogen and largely in the biofuels space and export that,” explained Prashant Ruia, director of Essar Capital.

Further advancing its clean energy objectives, Essar is set to decarbonize its Stanlow refinery in the UK with a projected investment of $3.6 billion, of which $1 billion is dedicated to establishing a blue hydrogen plant. This facility is expected to start with an initial 350MW of production capacity by 2027, eventually expanding to 4GW by 2030. A final investment decision is scheduled for September, pending the arrangement of government subsidies to offset the cost difference with natural gas.

Essar is also investing $4 billion to construct a green steel plant in Saudi Arabia, employing hydrogen technology to significantly reduce carbon emissions in steel production. This project is part of Essar’s broader strategy to integrate green technologies across its operations, reinforcing its commitment to achieving a sustainable future.

On the domestic front, Essar is enhancing its green mobility solutions by focusing on building an LNG and electric ecosystem to decarbonize long-haul heavy trucks, supporting cleaner transportation options. The conglomerate operates a fleet of 450 to 500 LNG-powered trucks and is developing a retail network to supply LNG to trucks, alongside its fleet of electric trucks, combining efforts to reduce CO2 emissions by approximately 60-70%.

Additionally, Essar is scaling up its coal bed methane production in India, aiming to increase its gas production to account for 5% of India’s total within the next five years. It is also exploring shale gas opportunities in West Bengal, signaling a robust expansion of its gas-based portfolio with an investment of Rs 2,000-3,000 crore.

Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks


Author FuelCellsWorks

More posts by FuelCellsWorks
error: Alert: Content is protected !!