‘Decarbonising industry’: Prashant Ruia on Essar’s energy transition

Essar acquired the Stanlow refinery from Shell in 2011, investing £769 million into the site, which produces 16 per cent of the nations’s fuel.

• EasternEye
• 28 October, 2024

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By: EasternEye

PRASHANT Ruia, CEO of the Essar Group, has outlined ambitious plans for Essar’s Stanlow refinery in Cheshire, aiming to make it the country’s first hydrogen-powered facility.

Speaking to The Times, Ruia emphasised that this project marks a major shift in the UK’s green energy strategy, with Essar committing to decarbonising industries across the North West.

“We are going to decarbonise the industry around the whole of the North West,” he said.

Essar acquired the Stanlow refinery from Shell in 2011, investing £769 million into the site, which produces 16 per cent of the nations’s fuel.

While parts of the 100-year-old refinery are heavily corroded and disused, a new hydrogen-powered section is under construction. “It’s the first refinery to move away from CO2-emitting gas in the UK,” Ruia told the newspaper.

The vision includes implementing carbon-capture technology in various parts of the refinery, with plans to store the carbon emissions in disused gas fields beneath Liverpool Bay.

However, Ruia explained that Essar’s first focus is building a plant to produce hydrogen, adding, “This will have 350 megawatts of generating capacity.” He said a second hydrogen plant could follow, noting that hydrogen not used by the refinery would support neighbouring factories in reducing emissions.

Ruia emphasised the UK’s global leadership in clean energy initiatives, stating, “These are the premier projects of this size in the world. There is no other country today which has this policy so clear and so fast-moving ahead.” He also highlighted the £16.7 billion in government funding for similar projects in Humberside, and said, “I don’t think people give enough credit for the strides Britain has taken.”

Ruia reflected on his early days in business, recounting a lesson learned on his first major project at 17: building a rail bridge in Mumbai’s suburbs. “They wouldn’t wait for you to grow up before they gave you responsibility,” he said. Though the project incurred a £192,308 loss, his father said, “That’s the best money I ever lost in my life, because of what you learnt.”

Essar Energy, which includes Stanlow, turned a profit of £287 million last year on £9.4 billion in sales. Reflecting on Essar’s divestments, including the sale of its mobile phone stake for £3.85 billion, Ruia said, “We de-levered our balance sheet by more than £15.4 billion,” adding, “It gave us an opportunity to start investing much more heavily in this energy transition now.”

The Ruias, who initially rose to wealth following India’s market liberalisation in the 1990s, remain committed to evolving their legacy, with Ruia noting his family’s support of the transition. “They may have taken a little bit more time to get it, but now they get it 200 per cent. This is real, not an idea any more. It’s happening.”