Essar Group Forays into Clean Energy Segment

Essar Group, a diversified metals-to-infrastructure conglomerate, is embarking on an ambitious journey to become a leader in clean energy. As part of its strategic vision for sustainable growth, Essar plans to invest a significant Rs 30,000 crore over the next four years to set up a green hydrogen plant in Jamnagar, Gujarat. This initiative is a cornerstone of Essar's commitment to decarbonize its operations and contribute to the global transition towards renewable energy.

The green hydrogen plant in Jamnagar will be a major investment, with a planned capacity of 1 gigawatt of hydrogen production and associated green molecules capacity of 1 million tonnes per annum. Essar Renewables, a sister concern, will provide 4.5 GW of renewable energy to produce hydrogen through electrolysis, the cleanest known energy source. This green hydrogen can be used in various applications, including transportation, electricity generation, industrial power, and heating.

In addition to the green hydrogen project, Essar Group is taking significant steps to decarbonize its existing operations. This includes implementing measures to reduce carbon emissions from its oil refinery operations in the United Kingdom. Furthermore, Essar is planning to construct a green steel plant in Saudi Arabia, contributing to the global effort to reduce carbon footprints in the steel industry. The company is also developing an LNG and electric ecosystem to decarbonize long-haul heavy trucks.

Looking ahead, Essar Group is considering entering the mining sector for critical minerals, which are essential for electric vehicle batteries, solar panels, and wind turbine magnets. This potential expansion would further align with Essar's commitment to sustainability and support the growing demand for clean energy technologies.

Prashant Ruia, Director of Essar Capital, underscores the importance of this green transition, stating that the company aims to create green molecules directly rather than converting green ammonia back into hydrogen, thereby reducing costs significantly. The goal is to build a complex that focuses on producing biofuels and exporting green molecules efficiently.