Essar Group is planning to invest Rs 30,000 crore over the next four years to establish a green hydrogen plant in Jamnagar, Gujarat, marking a significant step toward integrating clean energy into its growth strategy. The conglomerate, led by Prashant Ruia, Director of Essar Capital, plans to decarbonize operations at its UK oil refinery and construct a green steel plant in Saudi Arabia. Additionally, it aims to develop a renewable energy platform and expand into mining critical minerals essential for electric vehicle batteries, solar panels, and wind-turbine magnets.
Essar Future Energy aims to build 1 gigawatt of hydrogen capacity alongside a million tonnes per annum of associated green molecules at Jamnagar within the stated timeline. The initiative leverages 4.5 GW of renewable energy from Essar Renewables to split water molecules for hydrogen production, which can power vehicles, generate electricity, and heat homes and industries.
The conglomerate’s strategy focuses on generating electricity from coal while expanding its renewable energy portfolio, targeting a capacity of 10,000 MW over the next 3-5 years. This includes scaling up its Salaya-DevBhoomi Dwarka thermal power plant to meet Gujarat’s base-load requirements.
In the realm of green mobility, Essar is advancing an LNG and electric ecosystem to decarbonize long-haul heavy trucks, aiming to reduce CO2 emissions significantly. The company currently operates a fleet of LNG-powered trucks alongside electric trucks, providing solutions that address environmental concerns and efficiency in logistics.
Furthermore, Essar is enhancing its gas production capabilities from coal seams in West Bengal through Essar Oil and Gas Exploration and Production Limited (EOGEPL). The company aims to expand its coal-bed methane production and explore shale gas opportunities to bolster India’s gas production.
Internationally, Essar plans substantial investments to decarbonize its Stanlow refinery in the UK and establish a green steel plant in Saudi Arabia, both projects leveraging hydrogen technology to reduce carbon emissions.
