Page 15 - AsianOil Week 09 2023

AsianOil ENERGY TRANSITION AsianOil

Essar unveils energy transition

investment plans

UK INDIA’S Essar Group has created a new division company aims to start producing in 2026.
to focus on the energy transition, with projects in The GBP2bn ($2.4bn) project is designed to
There will be $2.4bn of the UK set to play a leading role. capture 1.8mn tonnes per year (tpy) of CO2 –
investment in the UK The programme will entail a $2.4bn invest- more than a tenth of industrial emissions in the
and $1.2bn in India. ment in the UK and a $1.2bn investment in region. Vertex represents a partnership between
India. The UK investment will be spent on the Essar and Progressive Energy.
Stanlow oil refinery, reducing industrial emis- Essar intends to invest in India via EET
sions in north-west England by about a fifth. Future Energy, which plans to construct a
The new investment plans will be undertaken by 1-GW green ammonia plant. The project’s
Essar Energy Transition (EET). unveiling comes after India’s government pub-
“The launch of EET is a major milestone in lished a National Green Hydrogen Mission in
Essar’s long-standing commitment to put the UK early January.
at the forefront of low-carbon energy,” said Essar Hydrogen and biofuels are emerging as sig-
Capital director Prashant Ruia. “We are excited nificant fuels globally, Essar said.
about the opportunity to drive the UK’s energy “The UK is positioned strongly to spearhead
transition by producing low-carbon future fuels, the rapid growth of the European low-carbon
which will help eliminate around 20% of the fuels market,” it said. “The UK already benefits
industrial carbon dioxide in Northwest England. from an advanced regulatory and policy frame-
In doing so, it will provide a blueprint for how work to support low-carbon energy production.”
traditional industries globally can be success- In the UK, the government wants to develop
fully transformed into hubs for the production 10 GW of hydrogen production capacity by the
of future energies.” end of the decade. ETT anticipates that roughly
Through the investments, the Stanlow plant two-thirds of its cash flow will be derived by
will become one of the most sustainable refin- low-carbon sources by 2030.
eries in Europe, according to Essar. Other than Essar’s ambitions will “not only help deliver
using domestic supplies, the company will also the UK’s net-zero ambitions and the enormous
import green ammonia to the UK from India environmental benefits therein, but will also
and other international markets. secure the long-term sustainable future for Stan-
EET will focus on a number more projects, low, protecting and creating new highly skilled
including at the Stanlow terminals and its mar- job opportunities at the heart of the Northern
keting business. It will also cover Vertex Hydro- Powerhouse economy for generations to come,”
gen, which is developing a 1-GW blue hydrogen EET’s managing partner, Tony Fountain, said in
project in the UK that could potentially be scaled a statement.
up to 3.8 GW in the future. Essar is also investing more in LNG supplies
Vertex signed deals last week to deliver more in India, including in the expansion of LNG
than 1 GW of low-carbon hydrogen to leading truck manufacturing and fuel stations.
industries around its site at Ellesmere Port, at Meanwhile in Saudi Arabia, Essar is building
the heart of the HyNet North West cluster. The a 4mn tpy green steel complex at Ras-Al-Khair.™

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