Charting a Sustainable Industrial Landscape

As the world grapples with the challenges of climate change, industries around the world are embracing the need for change. With a collective commitment to reducing their carbon footprint and transitioning to a sustainable future, industries are now seeking innovative solutions to combat the global crisis.

The energy sector, which includes oil and refineries, as well as industries like steel, cement, fertilizer (specifically ammonia), and liquefied natural gas (LNG), has faced increased scrutiny due to their substantial role in contributing to global greenhouse gas emissions. These sectors collectively account for approximately 16% of the total global emissions.

Acknowledging the challenges faced by these hard-to-abate sectors, it is important to note that recent progress in technology and evolving industry practices has opened up promising opportunities through the utilization of Green Hydrogen. This includes the development of green steel, green ammonia, and the adoption of LNG in a more sustainable manner, offering cleaner alternatives compared to coal and gasoline.

Green Steel, a concept that is gaining traction in the steel industry, represents a shift away from traditional iron ore-based steelmaking processes that heavily rely on coal and fossil fuels. Instead, it embraces cleaner alternatives, particularly direct reduction processes powered by Green hydrogen. Green Steel aims to significantly reduce carbon emissions associated with steel production by utilising renewable energy sources and water to produce hydrogen. This revolutionary approach can transform the steel industry, which is responsible for substantial global CO2 emissions.

Moreover, the emergence of green hydrogen, blue hydrogen, grey hydrogen, and carbon capture and storage (CCS) technologies offer further promise. Green hydrogen is generated through electrolysis powered by renewable energy, resulting in zero CO2 emissions. It serves as an alternative energy source and has the potential to be utilized for energy storage across various sectors. Blue hydrogen, derived from natural gas with carbon capture, significantly reduces its carbon footprint. These clean fuel options play a crucial role in decarbonisation initiatives across various industries.

While liquefied natural gas (LNG) is considered a cleaner alternative to coal and oil, advancements in LNG technology are continually enhancing its sustainability. Furthermore, advancements in LNG technology are enabling the industry to reduce its environmental impact. Ongoing research into carbon capture and storage (CCS) technologies ensures that the industry can minimize its environmental impact. By capturing and storing CO2 emitted during LNG production and transportation, the industry takes significant strides towards a greener future.

Industries worldwide are seeking innovative ways to reduce their carbon footprint and transition to a sustainable future. Green steel, green ammonia, and advancements in LNG technology are leading the charge in creating a greener industrial landscape.

Leading the way in this global transformation is Essar, a renowned global leader in steel, energy, and infrastructure. With a steadfast commitment to sustainability, Essar actively invests in green technologies and embraces greener alternatives. By setting an inspiring example for a low-carbon economy, Essar paves the way for a greener and more resilient world.

One such example is Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a prominent player in India's unconventional hydrocarbon industry. EOGEPL's production and utilization of Compressed Biomethane (CBM) gas demonstrates its dedication to sustainability and carbon reduction. By capturing methane emissions and converting them into CBM gas, EOGEPL prevents the release of potent greenhouse gases into the atmosphere. The adoption of CBM gas in various sectors displaces fossil fuel usage, resulting in a significant reduction in carbon emissions. EOGEPL's unwavering focus on CBM gas production and utilization plays a pivotal role in curbing carbon emissions and mitigating the adverse effects of climate change.

With the company’s sights set on new frontiers, such as Shale Gas exploration, EOGEPL continues to solidify its position as a leader in the unconventional hydrocarbon industry. By embracing sustainable practices and exploring innovative solutions, EOGEPL exemplifies the dedication required to build a sustainable future.

As industries worldwide unite and strive for sustainability, the key to success lies in collaboration, innovation, and a shared commitment to a greener world. By charting a sustainable path, industries have the power to shape a better future for generations to come.

Written by:

Sunil Jain

Operating Partner,

Energy Transition & Essar Capital