Essar Group, a multinational energy company, has announced the formation of Essar Energy Transition (EET) to drive the creation of the UK’s leading energy transition hub in North West England. 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.
Vertex Hydrogen, a joint venture between Essar Oil UK and Bristol-based Progressive Energy, is developing 1 GW of blue hydrogen for the UK market. It aims to reach 3.8 GW of follow-on capacity. According to the company statement, the investments made through EET could support the offset of 20 per cent of total industrial emissions in North West England. It said the Stanlow refinery could achieve a 75 per cent decrease in carbon emissions by 2030.
Essar Group has also made EET investments in India to cater to the country’s growing hydrogen economy. The company announced $1.2 billion to develop a cost-efficient global supply hub for India’s low-carbon fuels, such as green hydrogen and ammonia. It also aims to meet the expanding global market demand for green hydrogen by making shipments from India to European countries.
REGlobal’s Views: Many large energy and metals groups worldwide are foraying into the green hydrogen space as there is an increased demand for utilisation of low carbon fuels in industrial processes. Essar Group has strategically announced its planned investments in UK and India, both nations targeting massive green hydrogen expansion plans for domestic consumption as well as export.