Essar Group to invest ₹30,000cr in Gujarat green hydrogen plant
The Essar Group has revealed its intention to invest ₹30,000 crore over the next four years, in establishing a green hydrogen facility in Jamnagar, Gujarat. This decision is part of the conglomerate's strategy to prioritize clean energy as a primary driver for its future growth. Prashant Ruia, Director of Essar Capital, stated that the group is also exploring opportunities in mining essential minerals for electric vehicle batteries, solar panels, and wind turbine magnets.
Essar Future Energy's ambitious green hydrogen plans
Essar Future Energy, a subsidiary of the Essar Group, has set an ambitious goal to develop a 1GW hydrogen capacity and a green molecules capacity of one million tons per annum, in Jamnagar over the next four years. The company plans to utilize 4.5GW of renewable energy from another group entity, Essar Renewables, to produce hydrogen and oxygen through water molecule splitting. This initiative aligns with Essar's broader strategy to transition toward sustainable energy solutions.
Global decarbonization and green energy strategy
In addition to the green hydrogen project in Jamnagar, Essar Group is planning to decarbonize its oil refinery in the United Kingdom (UK) and establish a green steel plant in Saudi Arabia. It will also develop an LNG and electric infrastructure for decarbonizing long-haul heavy trucks. Ruia emphasized the importance of producing green molecules that can be directly transported, as converting green ammonia into hydrogen is costly.
Essar Power's expansion efforts and focus on LNG
Essar Power, a subsidiary of the Essar Group, is planning to expand its 1,200MW Salaya-DevBhoomi Dwarka thermal power plant by an additional 1,600MW to meet Gujarat's base-load needs. The group also aims to develop an LNG and electric ecosystem for long-haul heavy trucks. Ruia revealed that Essar presently operates a fleet of 450-500 LNG-powered trucks for various industries' logistics requirements and is working on establishing a retail network to supply LNG to trucks.
