India’s Essar Group plans to invest USD 4 billion to build a low-carbon steel plant in Ras Al-Khair, Saudi Arabia. Essar also plans to invest USD 3.6 billion to develop a range of low-carbon energy projects.
Oct 26, 2023
India’s Essar Group has plans to invest billions of dollars in low-carbon projects in Saudi Arabia, the UK, and India, as the company transitions into clean energy investments. Mr. Prashant Ruia, Director of Essar Capital said, “The conglomerate controlled by billionaire brothers Shashi and Ravi Ruia expects to get final approvals by June to start investing about USD 4 billion to build a low-carbon steel plant to produce 4 million tons per year in Ras Al-Khair, Saudi Arabia.”
“Once we get all the approvals, we have set a three-year timeline to build the project. We are building up this plant to meet the boom taking place in domestic demand for steel,” Mr. Ruia said in an interview at an investment conference in Riyadh.
Essar also plans to invest USD 3.6 billion to develop a range of low-carbon energy projects over the next five years. These include a USD 2.4 billion project to decarbonize its oil refinery in the UK and a USD 1.2 billion green ammonia plant in India to supply the UK and other international destinations in about three and a half years. The Indian executive said, “We have a demand for green ammonia and biofuels in the UK and in Europe, so we want to use India as a supply chain to export green fuels and green ammonia to European markets and to the UK.”
Mr. Ruia said, “The moment we start investing in these low-carbon technologies, the cost of doing this will also come down. Compare the cost of producing renewable power 10 years ago and the cost today and you will see it is down by a 10th, it’s now lower than the cost of making power from coal or gas.”