Essar to spend $3.6 billion on transition to low-carbon energy in UK, India

Employees walk past an Essar Group logo outside their headquarters in Mumbai.

Essar Group will invest $3.6 billion through a newly formed company, Essar Energy Transition (ETT), to drive its energy transition in the UK and India, the company said on Monday.

“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, between Liverpool and Manchester and $1.2 billion in India,” the group said, sharing details on the investments planned.

EET will include businesses such as Essar Oil UK, the company’s refining and marketing business in North West England, Vertex Hydrogen, which is developing 1 gigawatt (GW) of blue hydrogen for the UK market with a follow-on capacity set to reach 3.8GW, EET Future Energy, which is developing 1 GW of green ammonia in India, Stanlow Terminals Ltd, which is developing enabling storage and pipeline infrastructure, and EET Biofuels, which is investing in developing 1 MT of low carbon biofuels.

“EET believes that these investments will support the reduction of around 3.5 million tonnes of carbon dioxide, around 20 percent of the total industrial emissions in North West England,” the company said in its statement.

The $1.2 billion for India will be invested in developing a cost-efficient global supply hub for low-carbon fuels in India, including green hydrogen and green ammonia. Ammonia will be shipped from India to the UK, Europe and globally to meet expanding market demand for green hydrogen, the company said in its statement.