Essar to Invest Rs 30,000 Crore in Green Hydrogen Plant in Gujarat


Essar to Invest Rs 30,000 Crore in Green Hydrogen Plant in Gujarat
Essar Group has announced a major investment of Rs 30,000 crore over the next four years to establish a green hydrogen plant in Jamnagar, Gujarat. This ambitious project is part of Essar’s strategy to embrace clean energy and reduce carbon emissions across its global operations.
Prashant Ruia, Director of Essar Capital, which oversees the group’s investments, detailed the company's broader clean energy plans, including decarbonising its UK oil refinery, constructing a green steel plant in Saudi Arabia, and developing infrastructure to support LNG and electric ecosystems for long-haul heavy trucks.
Essar Future Energy will develop 1 gigawatt (GW) of hydrogen capacity and produce 1 million tonnes of associated green molecules annually in Jamnagar. The project will utilize 4.5 GW of renewable energy from Essar Renewables to generate hydrogen by splitting water molecules, which can then be used to power vehicles, generate electricity, and supply industrial needs.
Ruia highlighted the plan to create exportable green molecules directly, avoiding the high costs of converting green ammonia back into hydrogen. This approach aligns with Essar’s goal to lead in the production of biofuels and other green molecules.
In addition, Essar Power aims to expand its 1,200 MW thermal power plant in DevBhoomi Dwarka by an additional 1,600 MW to meet Gujarat’s energy needs. The group is also expanding its LNG and electric truck fleet, contributing to a cleaner transportation sector by reducing carbon dioxide emissions by up to 70%.
Essar Oil and Gas Exploration and Production Limited (EOGEPL), a leader in India’s coal bed methane industry, plans to boost its gas production and explore shale gas opportunities in West Bengal. EOGEPL aims to increase its contribution to India’s gas output to 5% within the next five years, investing Rs 2,000-3,000 crore to expand its gas-based portfolio.