The Mumbai-based metals-to-infrastructure conglomerate has planned an investment of Rs.30,000 crores in a green hydrogen plant. The company says this will boost its business expansion.
The domestic industrial corporation Essar Group aims to invest Rs.30,000 crores to build a green hydrogen plant in Jamnagar, Gujarat. The amount is equivalent to 3.5 billion USD. The company is considering clean energy as a path to their recent plans of business expansion, where this facility in Jamnagar will play a substantial role.
In an interview with PTI, the director of Essar Capital Prashant Ruia mentioned that Essar Future Energy aims to build 1 gigawatt of hydrogen capacity and associated green molecules capacity of 1 million tonnes per year in Jamnagar within the next four years.
Essar has laid out plans to reduce carbon emissions at its UK Stanlow oil refinery with a $3.6 billion investment. Besides, the company aims to establish a green steel plant in Saudi Arabia and develop an LNG and electric infrastructure to decarbonise long-distance heavy trucks. It is also exploring the possibility of entering the mining sector for essential minerals crucially utilised in electric vehicle batteries, solar panels, and wind turbine magnets.
The company plans to use 4.5 GW of renewable energy from their sister concern, Essar Renewables, to split water molecules into hydrogen and oxygen in the Jamnagar facility. This hydrogen can fuel vehicles, generate electricity, power industries, and heat homes and businesses. Instead of directly transporting hydrogen, which is not cost-effective, Essar aims to produce green molecules like green ammonia that are easier to transport.
Ruia mentioned other development plans as well across India in various sectors. Essar is increasing its coal-based electricity generation capacity while simultaneously developing a renewable energy platform.
They intend to expand to around 10,000 MW over the next 3-5 years. This includes expanding its Salaya-DevBhoomi Dwarka thermal power plant from 1,200 MW to 2,800 MW to fulfil Gujarat’s base-load requirements.
Additionally, in the field of sustainable transportation solutions, Essar aims to establish an LNG and electric ecosystem to promote a cleaner transport industry. It already operates a fleet of 450 to 500 LNG-powered trucks for various industries’ logistics needs.
As per Ruia, the organisation is diversifying its energy sources by producing coal-bed methane from a block in West Bengal through its subsidiary. It also plans significant expansion and are investing Rs 2000-3000 crore to grow their gas portfolio.
However, of all these initiatives, particular emphasis has been placed on the green energy plant project in Gujarat.
