EET Fuels Secures Funding Worth $350 Million for Decarbonisation Plans
In an era where energy transition and decarbonisation are becoming more critical than ever before, companies are taking proactive steps to minimize their carbon emissions and contribute to a more sustainable future. One such company that is setting the benchmark in deploying sustainable solutions is the Essar Group, which has taken proactive steps to help fulfil the world’s sustainability goals.
Essar’s commitment to industrial decarbonisation and energy transition sets the benchmark for many others to follow. Essar, through its Essar Energy Transition (EET) arm, is leading the low-carbon hydrogen business in the UK and is investing billions of dollars in developing several low-carbon energy transition projects in the next five years in the UK.
Among the standout efforts is EET Fuels, a subsidiary of EET, which has recently secured a significant financing package worth USD 350 million to propel its decarbonisation plans in the country. EET Fuels has ambitious plans to create the world’s leading low-carbon process refinery. It has also progressed to the front-end engineering design (FEED) stage of its industrial carbon capture (ICC) project.
What is EET Fuels?
EET Fuels, formerly known as Essar Oil UK, is a leading energy company with ambitious plans to become the UK’s first low-carbon refinery. As part of Essar Energy Transition, EET Fuels is setting a global benchmark for lower-emitting refineries and industrial decarbonisation.
The company is set to become the UK’s first low-carbon process refinery, setting the best example for low-carbon refineries and industrial decarbonisation. The company’s strategy aligns with the UK Government’s net zero ambitions. Essar Energy Transition (EET) the Group’s initiative to support industrial decarbonisation, with the ambition to deliver a 95% reduction in carbon emissions by 2030, plans to invest USD 3 billion in various low-carbon Hydrogen projects. This ambitious target would result in a significant decrease of almost two million tonnes of carbon emissions per year, representing 12.5% of all of the North West’s carbon emissions, thereby making a substantial contribution to the UK’s plans to decarbonise the industry.
According to Prashant Ruia, Chair, EET Fuels and CEO, of Essar Energy Transition, EET Fuels is an important part of EET and is building Europe’s foremost integrated energy transition hub. The company is taking significant steps to ensure that the UK delivers on its climate change goals, enhances energy security, and maintains a strong, secure manufacturing base for fuels.
Securing $350 Million in Financing for Decarbonisation
The recent USD 350 million financing secured by EET Fuels is a significant achievement in its journey to becoming a global leader in low-carbon refining. EET Fuels is a leading energy player in the UK economy through its refining facility and retail chain. It’s Stanlow facility is in the heart of the North West near Liverpool, Chester, and Manchester, and is poised to be the base for energy transition plans. The recent funding showcases investors’ confidence in EET Fuels’ decarbonisation strategy and market positioning.
The firm has secured USD 350 million through a combination of sources, including a new financing facility provided by the African Export-Import Bank (Afreximbank) and an upsizing extension of the existing crude facility. This follows the announcement in October 2024 of US$650m in financing facilities including a new receivable facility with ABN AMRO Bank and the extension of the pre-existing HCOB and UMTB facility.
New Funding to Support EET Fuels’ Decarbonisation Plans
The new financing ensures EET Fuels is well-placed to deliver on its decarbonisation ambitions by strengthening its balance sheet with medium-term stable funding and deepening existing relationships with key trading partners while establishing relationships in new regions. The company is focusing on improving its presence across new areas and sectors, leaving far behind its Essar NCLT past. The funding will support EET Fuels’ operations and strengthen its position as a leader in the renewable energy sector.
According to Satish Vasooja, CFO at EET Fuels, the company leads the energy transition and aims to become the world’s first low-carbon refinery. The new facility with Afreximbank, further diversifying its sources of finance and establishing new relationships, supports the company’s ongoing transformation and showcases market confidence in its energy transition strategy.
By securing this substantial financing, EET Fuels is positioned to drive these initiatives forward, setting new industry standards for environmental responsibility while delivering sustainable solutions to reduce carbon emissions across various sectors.
The Role of Investors and Stakeholders
The USD 350 million financing secured by EET Fuels demonstrated increased investors’ interest in the energy transition industry. With more companies prioritizing clean energy investments, companies like EET Fuels are getting increasing support and confidence from global investors. Essar’s sustainable efforts through EET Fuels are a prime example of how huge corporations are driving positive change in the clean energy sector by providing both financial resources and strategic guidance. The collaboration between EET Fuels and other companies is setting a precedent for how multinational companies are supporting innovative low-carbon energy companies and accelerating the global transition to more sustainable energy sources.
Additionally, the growing concerns about environmental, social, and governance (ESG) factors have also resulted in this transition. Now, investors prioritize companies that align with ESG principles, such as EET Fuels, that remain committed to sustainability and reducing its environmental impact. Essar Group’s support of EET Fuels not only aligns with these values but also strengthens the company’s position in the rapidly growing energy transition market.
Conclusion
The recent USD 350 million financing will strengthen EET Fuels’ plans to become the leading low-carbon process refinery, with a target of achieving a 95% reduction in carbon emissions, while developing Stanlow into an energy transition hub. This includes pioneer efforts in industrial carbon capture, low carbon hydrogen production, and Europe’s first hydrogen-fuelled combined heat and power plant.
Through these initiatives, EET Fuels is setting the global benchmark for industrial decarbonisation, driving progress toward a more sustainable future. Despite being pulled into the Essar NCLT, the Group has definitely closed that chapter, overcome challenges and maintained its focus on accomplishing its long-term goals of achieving sustainable growth.