The 3D of the Modern Energy Revolution Essar Approach

1. THE 3D OF THE MODERN ENERGY REVOLUTION: ESSAR APPROACH

2. The modern energy revolution has rapidly gained momentum and is poised to transform lives across the globe. At the centre of energy innovation are the 3Ds – Decarbonization, Decentralization, and Digitalization which drive innovation, and enable clean and sustainable energy, while creating job opportunities for millions. Major conglomerates like the Essar Group harness the 3Ds of energy to create a sustainable energy ecosystem. Essar Group, with a focus on energy, infrastructure, and steel sectors, among others, is majorly investing in cutting-edge technologies, such as low-carbon hydrogen, renewable energy, carbon capture, LNG, coal bed methane, renewables, biofuels, green steel, etc. Despite facing significant challenges related to Essar insolvency and debt repayments, it has successfully overcome all the challenges and underwent a major transformation by adopting a more sustainable business model.

3. Decarbonization: The First Pillar of Green Energy • The global surge in fossil fuel usage and industrial and agricultural practices plays a major role in accelerating climate change and global warming. Due to this, carbon emissions have also increased exponentially. Thus, there is an urgent need for decarbonisation to minimize or even reverse, the negative impacts of carbon emissions on the world. • Companies are shifting from fossil fuels to cleaner energy sources such as solar or wind to minimize carbon emissions and improve air quality. Among various fossil fuels, coal is one of the biggest causes of smog in different global cities, and it is also the largest CO2 emitter of all fossil fuels. It can, however, be replaced with cheap and cleaner alternatives such as natural gas and renewables.

4. Essar’s Bold Steps Towards Decarbonization • Essar Group is making significant strides in its decarbonization efforts as part of its ambitious goal to achieve a net zero emissions target. Thus aligning with its plans, Essar Group will turn the UK’s Stanlow refinery into the world’s first decarbonised green refinery. As part of fuel switch, the group will use low-carbon hydrogen at its refinery, cutting carbon emissions by as much as 95%. • According to Prashant Ruia Essar, Director of Essar, the group will make Stanlow, the world’s first decarbonised green refinery. Using blue hydrogen in the refinery process will decarbonise up to 2.5 million tonnes of CO2 – equivalent to taking 1.1 million cars off the roads.

5. Essar’s Other Net Zero Emission Targets • In the energy sector, Essar Oil and Gas Exploration and Production Ltd (EOGEPL), India’s largest producer of coal bed methane, contributes 65% to the nation’s total CBM production. The company plans to increase its share of the country’s gas production to 5% within the next five years. • Essar’s GreenLine is expanding its fleet of LNG-powered trucks to decarbonize India’s logistics sector, especially heavy trucking. By March 2025, GreenLine plans to touch 1,000 LNG trucks. It’s present fleet size is 500. • The group’s other decarbonization plans include setting up a 1 GW green hydrogen plant in Gujarat, creating an electric ecosystem for long-haul trucks, venture into biofuels and renewables etc. The conglomerate, which few years back was in spotlight due to Essar insolvency, turned debt-free in 2022 after selling some of its infrastructure assets at landmark values. The company now plans to leverage its stronger balance sheets to invest in green businesses.