In an era of the urgent need for sustainable energy solutions, the pursuit of green or low-carbon hydrogen as a clean and versatile energy carrier has emerged as a beacon of hope. Hydrogen, due to its high energy density, zero-emission, and broad applications, is seen as a key player in decarbonizing sectors such as transportation, industry, and energy. The global green hydrogen market, worth $828.2 million in 2023, is expected to touch the $141.29 billion mark by 2033, growing at a CAGR of 67.19% from 2023 to 2033. Today, when the world is moving towards a greener, more sustainable future, the Essar Group has emerged as a leader in this transformation, particularly in the rapidly developing hydrogen ecosystem.
Essar’s blueprint for building an ecosystem around this widely available green fuel involves setting up a production facility in the northwest of the United Kingdom under the EET Hydrogen brand. EET stands for Essar Energy Transition. With its ambitious projects to achieve decarbonization with an innovative approach, Essar is paving the way for a sustainable energy future that balances economic growth with environmental responsibility. Despite navigating challenges related to past Essar Debt, the company has deleveraged its balance sheet at one end and rebalanced its portfolio to cleaner businesses at the other end.
Let’s learn how the Essar Group remains at the forefront of sustainable energy innovations through its hydrogen initiatives. But before that, let’s shed some light on the role of hydrogen in reducing carbon emissions.
Role of Hydrogen in Reducing Carbon Emissions
Companies like the Essar Group have already taken several initiatives to help India reduce the carbon intensity of its economy by less than 45 percent and a Net Zero by 2070. Green hydrogen plays a substantial role in this transformation as it is produced through electrolysis, where water is split into hydrogen and oxygen using electricity generated from renewable sources like solar, wind, or hydropower. This process results in a clean and emission-free fuel that can replace fossil fuels and reduce carbon emissions.
There has been a steep surge in the need for Green Hydrogen due to its potential to decarbonize several sectors, including transportation, shipping, and steel. Green hydrogen can replace traditional fossil fuels in transportation, that contributes significantly to greenhouse gas emissions. Green Hydrogen has vast potential to decarbonize several sectors, lower carbon emissions, and achieve energy independence.
Essar’s Initiatives to Develop Hydrogen Ecosystems at a Global Scale
Essar’s considerable investments in hydrogen have positioned the company as the leading player in the low-carbon energy transition, with a strong presence in both blue and green hydrogen projects.
Globally, Essar is investing USD 3 billion in developing a range of low-carbon energy transition projects over the next five years at its UK site (between Liverpool and Manchester). Globally, Essar is further decarbonizing its oil refinery in the UK through Essar Energy Transition (EET), the leading low-carbon hydrogen business in the UK. In India, it plans to set up facilities for Green Hydrogen, Green Ammonia and Biofuels production.
Read Also: Essar 2.0: Rising with a New Approach
EET Includes
EET Fuels, the company’s refining and marketing business in North West England – plans to create the world’s leading low-carbon process refinery. It has also progressed to the front-end engineering design (FEED) stage of its industrial carbon capture (ICC) project. It aims to decarbonize its refinery operations at Stanlow by 95 percent. EET Fuels annually produces over 16% of the UK’s road transport fuels
EET Hydrogen, which is developing 1.35 gigawatt (GW) of blue hydrogen for the UK market, with a follow-on capacity set to reach 4GW and green hydrogen – first mover in large-scale, low-cost hydrogen production
EET Hydrogen Power is developing Europe’s first hydrogen-ready combined heat and power plant. The project will be developed in two phases to reach a capacity of 125 MW and reduce 740,000 tonnes of carbon dioxide per annum.
Stanlow Terminals Ltd, which is developing enabling storage and pipeline infrastructure – leading UK future energy storage business
Essar Supports the UK Government Green Energy Superpower Mission
Essar’s investment plays a crucial role in accelerating the UK’s low-carbon transformation, supporting the UK government’s green energy superpower mission, and creating highly skilled employment opportunities to support the government’s economic growth mission. As part of leading the Hynet consortium, EET aims to deliver the UK’s first blue hydrogen production system alongside integrated carbon capture technologies.
The HyNet North West consortium, including EET Fuels, Progressive Energy, ENI, Cadent Gas, and other partners, is committed to delivering an integrated carbon capture and the country’s first blue low-carbon hydrogen production system. EET Fuels Stanlow Manufacturing Complex plays an essential role in the HyNet project as the site for the proposed construction of hydrogen production plants in partnership with Progressive Energy.
This initiative is essential in decarbonizing the UK’s industrial base, creating jobs, and supporting the government’s goal of achieving net-zero emissions by 2050.
Essar’s Other Decarbonisation Plans
Essar’s other decarbonization plans include setting up a 1 GW green hydrogen plant in Gujarat, creating an LNG and electric ecosystem for long-haul trucks, etc. The conglomerate, which turned debt-free in 2022 after selling a few of its infrastructure assets due to Essar Debt, will expand its capacity to generate electricity from coal alongside building a renewable energy platform.
Read more: Essar is Transitioning Energy for Tomorrow
Strategic Goals and Expected Outcomes from These Projects
Essar’s refinery operations will reduce emissions by 2030 and eliminate them by 2040. The Essar Group proactively collaborates with other companies to strengthen its presence and achieve its strategic goals. Collaborations with national and domestic tech leaders are essential in minimizing emissions by 2030.
Essar’s commitment to a sustainable future is demonstrated through its ongoing national and international projects. Despite the challenges related to Essar debt, the Essar2.0 is moving ahead with an energy transition. With the world moving toward a more sustainable energy landscape, Essar’s green and blue hydrogen initiatives serve as a vital step in the transition to a low-carbon economy.
