Essar Group, an Indian multinational conglomerate, has announced plans to invest US$3.6bn in the development of low-carbon energy in the UK and India.
Through a newly created entity called the Essar Energy Transition (EET), the investment will focus on hydrogen production technologies, decarbonisation, biofuels and infrastructure projects, according to reports.
Some US$2.4bn will be put towards Essar’s Stanlow refinery in the UK, with the remainder going to projects in India.
Ultimately, the company believes these projects can achieve a reduction of roughly 3.5 million tonnes of carbon dioxide, or roughly a fifth of the total industrial emissions in northwest England.
The Stanlow refinery itself is expected to see 75% reduction in carbon emissions by 2030 if the EET’s decarbonisation plans are successful.
With regard to hydrogen production, a joint venture between Essar and Progressive Energy is developing 1 gigawatt of blue hydrogen for the UK market, the company said, with production eventually expected to reach 3.8 gigawatts.
Vertex recently signed agreements to supply over 1,000 megawatts of low-carbon hydrogen to multiple companies in the northwest.
Meanwhile, the UK government has set a target of 10 gigawatts of hydrogen production by 2030.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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