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

Essar Group has formed Essar Energy Transition (EET) to concentrate more on hydrogen, decarbonisation, new energy infrastructure, and biofuels. It aims to establish a fully integrated energy transition hub in Stanlow, 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 out of which $2.4 billion will be invested across its site at Stanlow in the UK and $1.2 billion in India.

Essar’s operating entities will be included in EET, including 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 is developing 1 GW of green ammonia in India and has a target market for the UK and international markets.

As part of EET’s decarbonisation plans, the Stanlow refinery in the UK will reduce carbon emissions by 75 per cent by the end of this decade. EET will invest $1.2 billion in India to build a cost-effective global supply hub for low-carbon fuels such as green hydrogen and green ammonia. According to Essar, ammonia will be shipped from India to the UK, Europe, and other parts of the world to meet the growing market demand for green hydrogen.