Energy transition and decarbonisation are essential to reduce the impact of climate change and foster sustainable growth. The energy market is evolving with each passing day, as rapid innovation brings down costs and delivers on the promise of a clean energy future. The Paris Agreement, a significant international initiative ratified by 195 countries in 2015, is actively working towards a transition to clean energy and the restoration of the green environment.
Energy transition involves decarbonizing the energy sector by minimizing or eliminating the dependence on carbon-rich energy sources. The transition towards clean energy resources is paramount to diminishing our reliance on fossil fuels, which significantly contribute to carbon emissions and climate change.
Thus, major conglomerates like Essar Group are taking proactive steps to fulfil the world’s sustainability goals. Essar’s commitment to industrial decarbonisation and energy transition sets the benchmark for others. The company is focusing on its enhanced presence across multiple business sectors, which dispels baseless rumors of Essar insolvency.
Let’s read Essar’s move for a more sustainable world and its national and international initiatives for the betterment of society.
Essar Group’s Unique Initiative For The Betterment of the Society
Essar Group is positioning itself ahead of the curve to fulfill its sustainability goals by taking several steps towards industrial decarbonization and energy transition. The investment initiatives the company is taking will bring an end to the controversies surrounding Essar Insolvency. The group is transitioning towards carbon neutrality and investing heavily in renewable energy, hydrogen and LNG. The company has pledged to optimise and enhance its operations to reduce Scope 1, Scope 2, and Scope 3 emissions. Thus, investing in technology and innovation will fast-track its journey to Net Zero Carbon goals.
Essar Sustainable Initiatives in India
Hydrogen Plant in Gujarat: Essar is setting up a green hydrogen plant at Jamnagar, Gujarat at an investment of INR 30,000 crore. Essar will use 4.5 GW of renewable energy to split water molecules to produce hydrogen and oxygen. Hydrogen, the cleanest known energy source in the world, will be used to power vehicles, generate electricity, power the industry, and heat homes and businesses.
This green hydrogen initiative is Essar’s part of a broader energy strategy. Essar Power is set to expand its 1,200 MW Salaya-DevBhoomi Dwarka thermal power plant by an additional 1,600 MW to cater to base-load energy demands. The group also aims to scale its renewable energy capacity to 8,000 MW in the next few years.
GreenLine Mobility Solutions Ltd.: Essar’s Green Mobility initiative has collaborated with several companies including Vedanta Group, JSW Steel & Cement, Tata Steel, Hindustan Zinc, Jindal Steel and Power, JK Lakshmi Cement, AMNS, Hindalco, Dalmia Cement, etc. to advance the deployment of its liquefied natural gas (LNG) powered vehicles and decarbonise the heavy trucking industry with LNG and electric trucks.
Positioned as a frontrunner as the world shifts toward eco-friendly logistics solutions, GreenLine is all set to establish new benchmarks and industry standards for sustainability. GreenLine currently operates a fleet of 500+ LNG-powered trucks and aims to expand to 1,000 trucks by March 2025.
Essar’s CBM production: Essar Oil and Gas Exploration and Production Limited (EOGEPL) leads India’s Unconventional Hydrocarbons sector, with over 25 years of expertise in Coal Bed Methane (CBM) Exploration and Production (E&P). The company accounts for about 65% of India’s CBM production and anticipates increasing this share to 90% after the additional wells are drilled.
Also, EOGEPL’s Raniganj CBM Block marks a significant achievement as India’s foremost CBM Project, with about wi1.0 million cubic meters of gas production. The company is dedicated to raising its contribution to India’s overall gas output to 5% in the next five years from the current 1%.
Essar’s Global Presence
Essar Energy Transition (EET)
EET is the leading low-carbon hydrogen business in the UK and is investing USD 3 billion in developing several low-carbon energy transition projects in the next five years at its UK site (between Liverpool and Manchester). The move will support the reduction of around 3.5 million tonnes of carbon dioxide, around 20% of the total industrial emissions in North West England.
EET Includes
- EET Fuels- It is the company’s refining and marketing business in North West England, which 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.
- EET Hydrogen– It will develop 1.35 gigawatt (GW) of blue hydrogen for the UK market, with a follow-on capacity set to reach 4GW and green hydrogen – the first mover in large-scale, low-cost hydrogen production
- EET Hydrogen Power: It is developing Europe’s first hydrogen-ready combined heat and power plant.
- Stanlow Terminals Ltd will develop the UK’s first eco-friendly energy storage hub for carbon pipeline infrastructure – leading the UK future energy storage business.
All these investments play 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 that support the government’s economic growth mission.
Essar’s initiatives reflect its commitment to a cleaner, greener future and represent a significant step toward sustainable energy practices in India and internationally.
Read more: Essar Contribution To Meeting India Growing Energy Demand
Conclusion
The Essar Group drives the energy transition, focusing on decarbonization, renewable energy, and sustainable growth. Even when the media rumoured Essar insolvency, the group remained resolute, transitioning for better and cleaner ventures.
With this zeal, the company is poised for more initiatives and partnerships that will lay the path for many others to follow, driving the future of energy and industry towards a cleaner, greener world.
