Diversified across core economic sectors
India, United Kingdom
Essar Energy Transition (“EET”) aims to develop UK’s leading energy transition hub in North West England.
EET plans to invest in developing a range of low carbon energy transition projects over the next five years including energy transition projects which have been announced in the North West of England.
EET will include:
- Essar Oil UK, the company’s refining and marketing business in North West England including a decarbonisation plan to reduce emissions by 75% before the end of this decade
- Vertex Hydrogen, which is developing 1 gigawatt (GW) of blue hydrogen for the UK market
- EET Future Energy, which is developing 1 GW of green ammonia in India, targeted at international markets;
- Stanlow Terminals Ltd, which is developing enabling storage and pipeline infrastructure; and
- EET Biofuels, which is investing in developing 1 MT of low carbon biofuels.
EET’s investment programme will play a major role in accelerating the UK’s low carbon transformation, supporting the government’s decarbonisation policy and creating highly skilled employment opportunities at the heart of the Northern Powerhouse economy.
EET’s investment in India will help deliver on the country’s emerging hydrogen ambition as a leading global hub of green hydrogen production and exports
Essar Oil (UK) is committed to playing a key role in the decarbonisation of the UK economy, with ambitious plans to build an energy transition cluster in the North West of England.
Essar is transforming for tomorrow, and through Essar Oil (UK), is leading this change in the UK by developing projects in refinery decarbonisation, biofuels, and new energies logistics to help deliver the UK’s energy transition ambitions.
The company is a leading UK-focused downstream energy company whose main asset is the Stanlow Manufacturing Complex, one of the most advanced refineries in Europe and situated close to the major cities of Liverpool and Manchester. The company is developing this location to create a strategic energy transition park.
The company is a key strategic national asset, annually producing over 16% of the UK’s road transport fuels, while playing an important part in Britain’s petrochemical industry. It produces 3.5 billion litres of petrol, 4.9 billion litres of diesel and 2.3 billion litres of jet fuel per year.
A major supplier in the North West and beyond, with customers including most of the major retail brands operated by international oil companies and supermarkets, Manchester and Liverpool airports, leading commercial airlines and the region’s trains and buses, Essar Oil (UK) is a market leader.
Essar has invested over $1 billion since acquiring Stanlow in 2011, when it became the first Indian company to buy and operate a UK-based refinery. The major improvement initiatives delivered under Essar ownership has turned the company around and built a highly profitable and sustainable business, which has posted EBITDA of over $300 million for each of the past four pre-pandemic years.
Essar has an entrepreneurial approach, driven by the innovation and dedication of its workforce across all its business streams and supported by significant capital investment to further grow and develop the business. Essar Oil (UK) is committed to becoming the UK’s first low carbon refinery, investing $1 billion over the next five years to support the development of the UK hydrogen economy and to decarbonise its operation. The company will half its emissions by 2030 and eliminate them by 2040.
This ongoing commitment to the UK’s energy sector was underlined in 2018 with the delivery of the largest ever maintenance and re-lifing turnaround to further improve reliability and safety, together with the completion of a major optimisation project to increase throughput (from 68 to 75 million barrels per year) and the production of high value products.
In 2019, the company acquired a number of assets from the multi-national BP, ensuring greater control over product evacuation and logistics infrastructure, helping to further expand our supply envelope in a very competitive UK Midlands region and underpin growth ambitions in the UK. These included
- Equity stake of 11.5 percent in the UKOP pipeline,
- 45% stake in a contractual joint venture with Shell, which runs the Kingsbury Terminal, and
- 100% interest in the Northampton Terminal
Essar Oil (UK) is a major regional employer, with over 800 employees, a similar number of contractors on site and a further 5,000 people employed through the extended supply chain. It contributes an estimated £60 million each year to the local economy.
Over recent years, Essar has strategically broadened its downstream integration, with a highly successful and award-winning entry into the UK fuel retail market. With 70 Essar-branded UK retail sites already operational across England and Wales, we plan to grow this network to 400 retail sites over the next five years.
The company is a significant player in the wholesale supply of Jet A-1 to major UK airports and has successfully entered the market for direct supply of aviation fuel, signing agreements with a number of leading international airlines. This sector of the business continues to grow.
Over the coming decade, the Board is determined to transform the business to ensure its long term sustainability, and this includes detailed planning to increase the production of bio-products, jet and petrochemicals, while using transformative technologies to make innovative use of excess gasoline molecules.
This will be supported by continuing investment in people, processes and infrastructure to further improve our safety and environmental performance.
The company launched Vertex Hydrogen in January 2022. Vertex is a joint venture between Essar Oil (UK) and Progressive Energy and sits at the heart of HyNet, the UK’s leading industrial decarbonisation cluster.
Vertex plans to construct two new low carbon hydrogen production units with a planned total investment of £1 billon to deliver the hydrogen production hubs. Follow on capacity growth is planned to reach 80% of the UK Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 2030.
Hydrogen from Vertex will be used to decarbonise Essar Oil (UK)’s production processes, along with lowering the emissions of other neighbouring business.
Essar Exploration & Production Ltd Mauritius (EEPLM) is an early stage developer, focused primarily on oil & gas exploration. Its global portfolio includes conventional acreages with a resource base of 3.9 billion barrels of oil equivalent, as well as unconventional hydrocarbon acreages that have a resource base of 12 TCF of gas. It has invested $1.1 billion in various acreages across the world.
These investments include:
- Our exploratory well in Vietnam offshore has encountered several intervals of hydrocarbon-bearing Upper Miocene clastic reservoirs with estimated net thickness of over 150 metres. Following approval from PVN, the well was announced as a Gas and Condensate discovery with a significant potential of additional hydrocarbon accumulation.
- Unconventional hydrocarbon acreages in India through its entity Essar Oil & Gas Expolartion and Production Limited (EOGEPL). EOGEPL is one of the largest exploration & production (E&P) companies in India primarily focused on Unconventional Hydrocarbons (UHC), with a resource base of 12 TCF of UHC that is strategically located in key sedimentary basins across India. The company is a pioneer of UHC in the country, with about 25 years of experience in E&P of Coal Bed Methane (CBM). EOGEPL’s flagship Raniganj East CBM asset is not only India’s largest producing CBM asset but also has a prolific shale gas potential.
EEPLM is breaking new ground in the unconventional hydrocarbon space in India and has emerged as a pioneer in CBM development and production. It seeks to utilise this experience and expertise to explore, develop and commercialise its other unconventional acreages towards enhancing the country’s energy security. With an independently assessed shale gas, we are poised to become a pioneer in this emerging energy frontier.
Essar Power is one of India’s first private sector independent power producer having a successful track record of 25+ years. It has a power generating capacity of 1285 MW across three plants, in India and Canada.
Essar has invested about USD 4.2 billion in the power portfolio, which includes USD 1.5 billion of equity.
Essar power has targeted to decarbonise its Power portfolio to reduce carbon emissions, help mitigate climate change and support the Paris Agreement’s target to keep the increase in global average temperature to well below 2 °C above pre-industrial levels. In line with this, Essar Power has planned to foray into the renewable sector with a major focus on PV Solar, Battery Storage, Electric Vehicle, Integrated Water & Power Projects, Biomass and Wind energy.