Moving HW tank electrical question

[Tropicalcats]

I am moving my HW tank outside and have this electrical connection currently inside. The shed I moving it into is on the opposite side of where it’s at now. Is it a simple matter of just flipping the wiring to the other side and running some wire in conduit to reach the tank in its new home about 10 ft away ?
What is the blue wire used for ?

[myers87]

Is it connected to the fuse?

[rebar]

Best way would be to abandon the old wire from the breaker box, and run new wire the next gauge thicker.