Essar Oil UK to infuse $3.6 billion in greening operations

30 Nov 2023 , 10:42 AM

Ruia-owned Essar Oil UK stated that it plans to invest $3.6 billion in a variety of energy-efficiency and carbon-capture activities. The investment shall be over a period of next three to five years. According to the company’s CEO, this will allow it to decarbonize its production processes by 2030.

The $3.6 billion will be spent in two parts: $2.4 billion in Stanlow, between Liverpool and Manchester in the United Kingdom, and $1.2 billion in India.

He stated that the investment will come from the company’s own cash flows, a mix of loan and equity, and the UK government’s ‘contracts for difference’ subsidies for low-carbon initiatives.

Essar announced the beginning of Essar Energy Transition in February, a plan to establish an energy transition hub in Northwest England.

Essar’s energy transition strategy is based on five principles: running the core Stanlow refining processes as efficiently and safely as possible; decarbonizing Stanlow’s operations; developing green fuels (including sustainable aviation fuels); building a hydrogen future through the launch of Vertex Hydrogen and as a key member of the HyNet consortium; and establishing Stanlow Terminals Ltd as the UK’s largest biofuels storage facility.

At its Stanlow refinery, the company is constructing a £360 million carbon-capture facility.

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