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Essar Group will invest GBP 30,000 in green hydrogen plant in Gujarat

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The Essar Group is focused on making clean energy a major catalyst for future growth

What’s the story

The Essar Group has revealed that it intends to invest ₹ 30,000 crore over the next four years to set up a green hydrogen production plant in Jamnagar, Gujarat.

This decision is part of the conglomerate’s strategy to prioritize clean energy as the main factor driving future development.

Prashant Ruia, director of Essar Capital, said the group is also exploring opportunities to extract minerals required for use in electric vehicle batteries, solar panels and wind turbine magnets.

Essar Future Energy’s ambitious plans for green hydrogen

Essar Future Energy, a subsidiary of the Essar Group, has set an ambitious target of developing a 1 GW hydrogen plant in Jamnagar in the next four years and producing green molecules of one million tonnes per year.

The company plans to use 4.5 GW of renewable energy from another group entity, Essar Renewables, to produce hydrogen and oxygen by splitting water molecules.

This initiative is part of Essar’s broader strategy to transition to sustainable energy solutions.

Global decarbonization and green energy strategy

Apart from the green hydrogen project in Jamnagar, Essar Group plans to decarbonize its oil refinery in the United Kingdom (UK) and set up a green steel plant in Saudi Arabia.

It will also develop LNG and electricity infrastructure to decarbonize long-haul heavy trucks.

Ruia stressed the importance of producing green molecules that can be directly transported, as converting green ammonia into hydrogen is expensive.

Essar Power’s expansion efforts and focus on LNG

Essar Power, a subsidiary of the Essar Group, plans to expand its 1,200 MW Salaya-DevBhoomi Dwarka Thermal Power Plant by an additional 1,600 MW to meet Gujarat’s baseload demand.

The group also aims to develop an LNG and electric ecosystem for heavy trucks over long distances.

Ruia revealed that Essar currently operates a fleet of 450-500 LNG-powered trucks for logistics across industries and is working to establish a retail network to supply LNG to trucks.