Leading the Green Revolution: Prashant Ruia on How the UK is Racing Ahead in Clean Energy

As the world pivots towards sustainable energy, Prashant Ruia, chief executive of the Essar Group, is spearheading a visionary project in the UK. Ruia, a key figure in India’s business landscape, is transforming Britain’s second-largest oil refinery, Stanlow, located along the River Mersey, into the nation’s first emissions-free refinery powered by hydrogen. This ambitious endeavor not only aims to decarbonize the UK’s industrial North West but also reflects Ruia’s forward-thinking approach to the future of energy and his commitment to sustainable growth.

Essar Group acquired the Stanlow refinery in 2011, but by then, the facility had endured years of underinvestment and decay. A hundred years old, Stanlow has been producing 16% of the UK's fuel, but age has taken its toll, leaving pipes and structures visibly deteriorated. However, Essar has invested approximately $1 billion to rejuvenate the plant, and now, Ruia envisions a future where Stanlow runs on hydrogen, eliminating its CO2 emissions entirely.

The Hydrogen-Powered Future of Stanlow

Ruia’s project at Stanlow is a bold step toward reducing the environmental impact of the refinery industry. The new facility, currently under construction, will be fueled by hydrogen instead of traditional CO2-emitting gas, making it the first refinery of its kind in the UK. This switch to hydrogen is the initial phase of a larger energy transformation that includes installing carbon capture technology. If government support aligns, Ruia plans to pump captured carbon into disused gas fields beneath the Liverpool Bay seabed, marking a significant reduction in emissions for the region.

Essar is not only addressing the need for clean energy but also taking steps to produce it. The company is building a 350-megawatt hydrogen plant, expected to supply hydrogen for the new refinery and nearby factories like Encirc’s bottle-making facility. Ruia’s vision aligns closely with the UK government’s broader energy transition goals under the GB Energy plan, which aims to deliver clean power by 2030. Just a few weeks ago, Downing Street pledged £21.7 billion in funding to support such decarbonization initiatives across the North West and Humberside, positioning the Stanlow project as a global leader in industrial decarbonization.

Building a Legacy of Resilience and Innovation

Ruia’s journey in business began early. As a teenager, he was entrusted with running a 3-kilometer rail bridge construction project in Mumbai’s suburbs a task that, while challenging, taught him invaluable lessons. With guidance from his father and uncle, Shashi and Ravi Ruia, the young Prashant learned that successful management is not just about profit but about resourcefulness and resilience during hard times.

Ruia’s upbringing in a large, closely-knit family nurtured his entrepreneurial spirit. Although the family faced financial challenges in the 1990s, Ruia’s father supported his son’s ventures, seeing failure as an educational tool rather than a setback. The Essar Group grew from its humble origins into a diversified empire, including interests in steel, refineries, mobile communications, and infrastructure.

Navigating Challenges and Pushing Forward

The Essar Group has encountered its share of setbacks over the years, particularly during the COVID-19 pandemic, which severely impacted demand for fuel. As the pandemic grounded airlines and kept vehicles off the road, Stanlow’s revenue plummeted. Despite the financial strain, Essar managed to retain its workforce and maintain operations, albeit at a loss. The company also faced criticism for deferring a £356 million VAT payment under a COVID-19 support scheme and for experiencing governance issues that led its auditor, Deloitte, to resign. Nonetheless, the company addressed these challenges, settled its VAT debt, and emerged from the pandemic on stronger footing.

Ruia reflects on these experiences as learning opportunities, driving Essar’s shift toward renewable energy. The company’s newfound focus on decarbonization represents a clean slate and a chance to contribute positively to the environment. Ruia’s determination to move beyond traditional fossil fuels is an example of the long-term strategic thinking that has defined his career.

A Green Vision for the Future

Essar’s transformation goes beyond the Stanlow project. Ruia envisions a sustainable, emissions-free industrial landscape for the entire North West region of the UK. By establishing a reliable hydrogen production facility and collaborating with neighboring industries, Essar is helping to create a “hydrogen economy” that promises to reduce CO2 emissions across multiple sectors. The company’s commitment to sustainability is a reflection of Ruia’s unwavering optimism and resilience, qualities he attributes to his father’s mentorship.

Under Ruia’s leadership, Essar Energy has become a pivotal force in the UK’s green energy transition. The company’s progress is part of a larger narrative of global industry shifts towards reducing environmental impact, and Stanlow stands as a symbol of this transformation.

A Legacy of Transformation

In a world facing pressing environmental challenges, Prashant Ruia’s vision of a cleaner, greener industry offers hope and inspiration. As Essar’s hydrogen-powered refinery at Stanlow nears completion, Ruia’s commitment to a sustainable future is evident. The project not only benefits the UK’s industrial North West but also positions Britain as a leader in the global energy transition. Ruia’s legacy is one of resilience, innovation, and a deep-seated belief in the potential of green technology to reshape industries for the better.

Through Essar’s efforts, Ruia aims to show that industrial prosperity and environmental stewardship are not mutually exclusive. As the world watches, the Stanlow project exemplifies how traditional industries can evolve to meet the demands of a cleaner, more sustainable future.