Reliance Industries Ltd is all set to shape its green energy business; to contribute nearly 10% EBITDA in 5 years

Spread the love

Billionaire’s Mukesh Ambani Reliance Industries Limited could create a wave of partnerships to shape a green energy business that spans investments in solar energy, batteries, and hydrogen, contributing nearly 10% of the company’s pre-tax profit in five years The report states that there is. The oil and retail conglomerate has announced a wave of partnerships with REC, NexWafe, Sterling and Wilson, Stiesal, and Ambri. The total cost is $ 1.2 billion.

“With these investments, Reliance has gained expertise and a portfolio of technologies and has begun building a fully integrated end-to-end renewable energy ecosystem through solar, battery, and hydrogen,” said securities firm Burn. Stein said in the report. “Reliance will commercialize the acquired technology and establish a manufacturing plant in India.”

Reliance is expected to continue investing in technologies such as fuel cells and key materials in the clean energy sector.

Trust requires technology for fuel cell development, and the company is expected to acquire or license from one of the industry leaders in Plugpower, Ballard, Ceres, and more.

You may also need to invest in major suppliers in this sector, such as manufacturers of cathodes, separators, and electrolytes for battery manufacturing. We may also invest in MEAs, catalysts, and bipolar plates for fuel cell manufacturing.

Reliance aims to produce 100 GW of solar energy and cost $ 1 per kg of green hydrogen by 2030. We will spend $ 10 billion on new energy businesses over the next three years to reach these goals.

“Based on clean energy capital investment, we see a path for Reliance to build a clean energy business, which could be worth $ 36 billion,” Bernstein said.

Reliance is building a green energy business to supply India with the equipment needed for the green energy revolution.

The company also promises zero carbon by 2035, which is earlier than any other energy company in the region.

“Reliance has to do with balance sheets but lacks the technology and manufacturing know-how that is essential to success. Reliance can easily dismiss the ability to do so, but reliance can successfully move into new areas. I think it’s the same here. “

Trust at the June shareholders’ meeting announced plans to invest $ 10 billion in low-carbon energy, marking another chapter in the company’s transformation.

Over the next three years, Reliance will spend R600 billion to build four “Giga Plants” to manufacture integrated PV modules, electrolytic cells, fuel cells, and batteries to store energy from the grid. The location of these plants is at Jam Nagar’s new 5,000-acre Green Energy Giga Complex. An additional Rs 15,000 will be used to invest in the entire value chain, technology, and new energy business partnerships.

“From oil and gas to telecom, retail, and the Internet, it’s hard to think of another company that has reinvented itself as much as Reliance has done in the last decade, but it’s a bold move. Many will question the source of the reliance. These industries are of value, except for their position as one of the most successful Indian conglomerates. “

Reliance has acquired REC Solar Holdings from China National Blue Star for $ 717 million.

REC is a long-established manufacturer of polysilicon, PV cells, and modules with factories in Norway and Singapore. Reliance will use REC’s technology to build a new integrated solar manufacturing plant in Jam Nagar to expand its production capacity globally.

Ambani’s company has invested in the US $ 45 million in NexWafe to jointly develop and commercialize large single-crystal green solar wafers, 40 from leading solar EPC and O & M providers Sterling and Wilson Solar Limited (SWSL). % Is acquired.

We have also signed an agreement with Stiesdal in Norway for technological development and the manufacture of Stiesdal’s HydroGen electrolytic cell in India. The additional US $ 50 million has been invested in US-based Ambri to develop and commercialize Ambri’s liquid metal batteries for energy storage.

Reliance is also in talks with Ambri to set up a large battery manufacturing facility in India.

“Overall, Reliance is building a fully integrated end-to-end renewable energy ecosystem for its customers through solar, batteries, and hydrogen. Other energy companies are across the new energy value chain. We haven’t invested, but if Reliance can do this, the potential for value creation revenue will be significant. “