Essar to invest $2.4bn in Stanlow energy hub

Essar Group has announced the formation of Essar Energy Transition (EET) to drive “the creation of the UK’s leading energy transition hub in North West England.”

Essar said EET plans to invest a total of $3.6 billion in developing a range of low carbon energy transition projects over the next five years, of which $2.4 billion will be invested across its site at Stanlow, between Liverpool and Manchester, and $1.2 billion in India.

“EET’s investment programme will play a major role in accelerating the UK’s low carbon transformation, supporting the government’s decarbonisation policy and creating highly skilled employment opportunities at the heart of the Northern Powerhouse economy,” said Essar.

“The investments, across a range of hydrogen production technologies, decarbonisation, biofuels (road and aviation), and infrastructure projects, will contribute to North West England quickly becoming one of the leading post-carbon industrial clusters in Europe.

“EET believes that these investments will support the reduction of around 3.5 million tonnes of carbon dioxide, around 20% of the total industrial emissions in North West England.

“The launch of EET heralds Essar’s repositioning for growth and resurgence.

“Essar is now investing in new forward-looking assets with modern, efficient, and ESG-compliant technologies to last for several decades.

“Other sustainability investments planned by the Essar Group beyond EET include the creation of an LNG value chain in India, including LNG truck manufacturing and LNG fuel stations, setting up a pellet plant in Odisha, in eastern India and a 4-million tonnes per annum green steel complex at Ras-Al-Khair, Saudi Arabia.

“EET’s strategy is founded on the fact that hydrogen and biofuels are fast becoming globally significant fuels of the future and that the UK is positioned strongly to spearhead the rapid growth of the European low carbon fuels market.

“The UK already benefits from an advanced regulatory and policy framework to support low carbon energy production, including the UK government’s target of achieving 10GW of hydrogen production by 2030, alongside developing low carbon hydrogen infrastructure, expertise and significant customer demand.

“Such is the scale of the market growth opportunity that EET estimates approximately two-thirds of its aggregate cash flows could come from diversified low carbon sources before the  end of the decade.”

Prashant Ruia, Director, Essar Capital, said: “The launch of EET is a major milestone in Essar’s long-standing commitment to put the UK at the forefront of low carbon energy.

“We are excited about the opportunity to drive the UK’s energy transition by producing low carbon future fuels which will help eliminate around 20% of the industrial carbon dioxide in Northwest England.

“In doing so, it will provide a blueprint for how traditional industries globally can be successfully transformed into hubs for the production of future energies.

Tony Fountain, Managing Partner of Essar Energy Transition, said: “EET’s ambitious investment plans will not only help deliver the UK’s net zero ambitions and the enormous environmental benefits therein, but will also secure the long term sustainable future for Stanlow, protecting and creating new highly skilled job opportunities at the heart of the Northern Powerhouse economy for generations to come.”