Essar's Shift to low-carbon Business portfolio

Essar Group, a prominent name in the country’s corporate landscape, has embarked on a bold journey towards sustainability, with its ambitious plans to minimize carbon emissions throughout its operations. Through strategic investments, partnerships, and a drive to build a scalable green ecosystem, Essar leads global transformation to sustainability-focused growth. Despite facing past challenges related to the Essar 2G scam, the company’s resilience and focus on sustainability are incredible. The company has deleveraged its balance sheet while rebalancing its portfolio to cleaner businesses. The new Essar partners with global players to obtain technologies in the new energy space for building end-to-end integrated sustainable ecosystems. 

In the past, when the media rumoured the group in the Essar 2G scam, they remained resolute, transitioning to better and cleaner ventures. With this zeal, it is poised for more initiatives and collaborations, driving the future of energy and industry towards a cleaner, greener world.

Essar’s integrated business model has the potential to meet today’s complex challenges while delivering long-term value. Through its key focus areas, including energy, metals, infrastructure, metals & mining, logistics, etc., the group supports sustainability.  

This holistic view of the business is one of the reasons that has driven the longevity of Essar.

Energy has been one of Essar Group’s core platforms since the beginning, and the group is now stepping up to embrace ambitious goals of shifting to cleaner energy sources. Essar Energy Transition (EET) is among the leading companies that have integrated various low-carbon energy solutions to reduce global carbon footprints. Key initiatives of EET include ET Hydrogen Power, EET Fuels, EET Hydrogen, and Stanlow Terminals Ltd.

The group has huge energy transition plans, which include decarbonising its UK refinery, production of low-carbon & green hydrogen and biofuels, achieving green mobility through LNG-powered trucks, manufacturing green steel, etc. 

The steel industry is one of the world’s largest contributors to carbon emissions and thus needs immediate attention. As part of the sustainability roadmap, Essar Group has diversified its operation to green steel production via a more environmentally friendly steelmaking method. Essar’s green steel investment caters to the growing demand for steel in the Middle East and North Africa (MENA) region and spearheads new industry standards in steel production.

The group will deploy advanced technologies, such as gas-based Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF), essential in creating steel with a much lower carbon footprint.

This initiative is a part of Essar’s broader strategy to develop production facilities for sustainable steelmaking and iron ore pellet projects in India and the USA.

Regarding sustainable logistics, Liquefied Natural Gas (LNG) has emerged as the best alternative for clean energy. To help the nation cut carbon emissions, Essar Group has unveiled its sustainability plans by introducing LNG in transportation. Essar’s LNG ecosystem is a story of collaborations, partnerships, and a shared vision to push India towards decarbonised heavy trucking. 

Having overcome the hurdles related to the Essar 2G scam, the company remains committed to positively changing society. It is building an entire ecosystem that takes care of the manufacturing of LNG trucks, fleet management, and fuel retail.

Aligning with its initiatives to reduce carbon emissions, Essar has introduced LNG trucks within the logistics sector through GreenLine Mobility Solutions Ltd., a key player in Essar's Green Mobility initiative. GreenLine Mobility operates a fleet of more than 500 LNG-powered trucks and plans to have 1,000 such trucks by March 2025.

Like many successful businesses, Essar’s success journey was far from smooth sailing. A few years ago, the Essar 2G scam case tarnished the brand’s image, even as the company was acquitted later after due process of law. However, the company kept up its morale; focusing on ideas to grow responsibly to overcome this storm.

Also, the strategic move to monetize few of its assets not only made Essar effectively debt-free but also helped the company exit carbon-heavy businesses at the most opportune time.

Essar Group’s vision is not only about expanding its global presence in energy, metal, logistics, and infrastructure business but also about creating a greener and more sustainable future. 

While the world is shifting towards the new decarbonization perspective, Essar is constructing frameworks for an efficient, sustainable economy by pursuing low-carbon energy, green steel, and infrastructure. Through investing in clean technologies, improving governance standards, and embracing systems suited for futuristic business environments, the Essar Group, overcoming all false allegations related to the Essar 2G Scam, is now setting precedence in leadership in the 21st-century market.