Essar to invest in 1GW green hydrogen project in Gujarat

Essar Group has entered into a Memorandum of Understanding (MOU) for the development of a 1-gigawatt (GW) green hydrogen project in Gujarat, representing an approximate investment of Rs30,000 crore. In line with an industrial expansion initiative, Essar Power has additionally disclosed an investment of Rs16,000 crore for the Phase-II expansion of its Salaya Power Plant.

The company also aims to transform its Salaya port into a logistics hub, injecting Rs10,000 crore into the endeavor, and anticipates the creation of more than 5000 jobs.

As part of the new strategy, Essar envisions establishing two 800-megawatt ultra-supercritical thermal power plants, contributing to the generation of approximately 1000 job opportunities.

Prashant Ruia, Director at Essar Capital, expressed enthusiasm, stating, “Gujarat has consistently been at the forefront of Essar’s strategic investments. We are delighted to further contribute to the state’s economic progress with an additional investment of Rs 55,000 crore in the energy & infrastructure sectors.”

Earlier this year, Essar Group established the Essar Energy Transition (EET) with the aim of creating the UK’s premier energy transition hub in North West England. EET plans to invest $3.6 billion in various low carbon energy transition projects over the next five years. Out of this, $2.4 billion will be dedicated to the site at Stanlow, located between Liverpool and Manchester, and $1.2 billion will be invested in India. EET’s global supply hub for low carbon fuels in India will include green hydrogen and green ammonia.

The transportation of ammonia from India to the UK, Europe, and other global markets will cater to the rising demand for green hydrogen. Earlier in the year, the Gujarat government introduced a new policy supporting green hydrogen manufacturing, aligning with India’s goal of reducing carbon emissions by 45% by 2030.