Essar Future Energy outlines ₹30,000 crore spend for 1 GW electrolyzer in Jamnagar, Gujarat

India's Essar Group plans invest ₹30,000 crore over four years to set up a green hydrogen plant at Jamnagar, Gujarat.

The venture, housed in Essar Future Energy (EFE), will develop 1 GW of hydrogen capacity along 1 million tonnes per annum of associated green molecules capacity, the group's top executive Prashant Ruia told reporters.

"The idea is to create green molecules that can be transported directly rather than green ammonia. Because you carry green ammonia and then you convert it into hydrogen. That cost is very high. So we are trying to build a complex which can make green molecules from hydrogen and largely in the biofuels space and export that," Ruia said. 

Essar, which turned debt-free in 2022, is eyeing the clean energy space for expansion for new growth. EFE plans use 4.5 GW of renewable energy generated by sister concern Essar Renewables to split water molecules through electrolysis, thereby producing oxygen and green hydrogen. 

Ruia, director at Essar Capital, which manages the Essar Group's portfolio of investments across metals, energy and infrastructure, told reporters the conglomerate was considering a foray into mining of critical minerals, which the government has opened to the private sector. Such minerals are mainly used in electric vehicle batteries, solar panels and wind-turbine magnets, making them crucial to the development of new energy technologies.  

The group is also looking to decarbonize its oil refinery in the UK, construct a green steel plant in Saudi Arabia, and build an LNG and electric ecosystem to decarbonize long-haul heavy trucks, Ruia said.