New Delhi: billionaire mukesh ambani‘s Reliance Industries Ltd. has formed a wave of partnerships to shape its green energy business, which extends to solar, battery and hydrogen investments and contributes around 10 per cent to the company’s pre-tax profit, a report said. can give.
Oil-to-retail conglomerate announces a wave of partnerships with REC, NexWafe, Sterling and wilson, Stiesal and Ambri have a total cost of $1.2 billion.
“With these investments, Reliance acquired the expertise and technology portfolio to begin building a fully integrated end-to-end renewable energy ecosystem through solar, battery and hydrogen,” brokerage Bernstein said in a report. Is.” “Reliance will commercialize the acquired technologies and set up manufacturing plants in India.”
Reliance is expected to continue to invest in technology such as fuel cells and key materials for the clean energy sector.
“Based on our assumptions, we believe the new energy business could contribute approximately 10 percent to the company’s total EBITDA by FY26, assuming all factories are built and ramped up over the company’s timeline. has been done,” it said. “This will make Reliance a highly diversified conglomerate spanning E&P, refining, petrochemicals, clean energy, telecommunications, retail and the Internet, although we suspect the company will be divested given the inefficiency of such a corporate structure.”
Reliance still needs technology for fuel cell development, which the company hopes to acquire or license from one of the industry leaders such as Plug Power, Ballard, or Ceres.
It may also need to invest in major suppliers such as manufacturers of cathodes, separators and electrolytes for battery manufacturing and MEA for fuel cell manufacturing, catalysts and bipolar plates.
Reliance is targeting 100 GW of solar manufacturing and a green hydrogen cost of $1 per kg by 2030. $10 billion will be spent on new energy business over the next 3 years to achieve these goals.
“Based on the capital expenditure for clean energy, we see a path for Reliance to build a clean energy business that could be worth $36 billion,” Bernstein said.
Reliance is building a green energy business to supply India the equipment needed for its green energy revolution.
In addition, the firm has committed to be net carbon zero by 2035, earlier than any other energy company in the region.
“While Reliance has a balance sheet and relationships, it lacks the technology and manufacturing know-how that will be needed for success. While it is easy to dismiss their ability to pull it off, Reliance has shown that they can successfully transition into new verticals. We can move on. We think the same is true here.”
At its shareholders’ meeting in June, Reliance announced its plan to invest $10 billion in low-carbon energy, marking another chapter in the company’s transformation.
Over the next 3 years, Reliance will spend Rs 60,000 crore to build four ‘Giga factories’ to manufacture integrated solar PV modules, electrolysers, fuel cells and batteries to store energy from the grid. The sites of these plants will be located in the new 5,000-acre Green Energy Giga Complex in Jamnagar. An additional Rs 15,000 crore will be used for investments in the value chain, technology and partnerships for the new energy business.
“From oil and gas to telecommunications, to retail and the internet, it is difficult to think of any other company that has reinvented itself like Reliance in the past decade. However, it is a bold move, and many People will question whether the source of Reliance is of value in these industries, other than its status as one of the most successful Indian conglomerates,” it said.
Reliance is acquiring REC Solar Holdings from China National Bluestar for $771 million.
REC is a well-established manufacturer of polysilicon, PV cells and modules with plants in Norway and Singapore. Using REC’s technology, Reliance will build a new integrated solar manufacturing plant in Jamnagar and expand capacity globally.
Ambani’s firm is investing $45 million in Nexwaf to jointly develop and commercialize monocrystalline green solar wafers, and is acquiring 40 percent in leading solar EPC and O&M provider Sterling & O&M. Wilson Solar Limited (SWSL).
It has also signed an agreement with Steesdal of Norway for technology development and manufacturing of Steisdal’s hydrogen electrolysers in India. Another $50 million has been invested in US-based Ambari to develop and commercialize Ambari’s liquid metal batteries for energy storage.
Reliance is also in talks with Ambari to set up a large-scale battery manufacturing facility in India.
“Overall, Reliance is building a fully integrated end-to-end renewable energy ecosystem for customers through solar, battery and hydrogen. No other energy company is investing in an entire new energy value chain. But if Reliance can pull it off then the value creation and earning potential will be substantial,” Bernstein said.
Oil-to-retail conglomerate announces a wave of partnerships with REC, NexWafe, Sterling and wilson, Stiesal and Ambri have a total cost of $1.2 billion.
“With these investments, Reliance acquired the expertise and technology portfolio to begin building a fully integrated end-to-end renewable energy ecosystem through solar, battery and hydrogen,” brokerage Bernstein said in a report. Is.” “Reliance will commercialize the acquired technologies and set up manufacturing plants in India.”
Reliance is expected to continue to invest in technology such as fuel cells and key materials for the clean energy sector.
“Based on our assumptions, we believe the new energy business could contribute approximately 10 percent to the company’s total EBITDA by FY26, assuming all factories are built and ramped up over the company’s timeline. has been done,” it said. “This will make Reliance a highly diversified conglomerate spanning E&P, refining, petrochemicals, clean energy, telecommunications, retail and the Internet, although we suspect the company will be divested given the inefficiency of such a corporate structure.”
Reliance still needs technology for fuel cell development, which the company hopes to acquire or license from one of the industry leaders such as Plug Power, Ballard, or Ceres.
It may also need to invest in major suppliers such as manufacturers of cathodes, separators and electrolytes for battery manufacturing and MEA for fuel cell manufacturing, catalysts and bipolar plates.
Reliance is targeting 100 GW of solar manufacturing and a green hydrogen cost of $1 per kg by 2030. $10 billion will be spent on new energy business over the next 3 years to achieve these goals.
“Based on the capital expenditure for clean energy, we see a path for Reliance to build a clean energy business that could be worth $36 billion,” Bernstein said.
Reliance is building a green energy business to supply India the equipment needed for its green energy revolution.
In addition, the firm has committed to be net carbon zero by 2035, earlier than any other energy company in the region.
“While Reliance has a balance sheet and relationships, it lacks the technology and manufacturing know-how that will be needed for success. While it is easy to dismiss their ability to pull it off, Reliance has shown that they can successfully transition into new verticals. We can move on. We think the same is true here.”
At its shareholders’ meeting in June, Reliance announced its plan to invest $10 billion in low-carbon energy, marking another chapter in the company’s transformation.
Over the next 3 years, Reliance will spend Rs 60,000 crore to build four ‘Giga factories’ to manufacture integrated solar PV modules, electrolysers, fuel cells and batteries to store energy from the grid. The sites of these plants will be located in the new 5,000-acre Green Energy Giga Complex in Jamnagar. An additional Rs 15,000 crore will be used for investments in the value chain, technology and partnerships for the new energy business.
“From oil and gas to telecommunications, to retail and the internet, it is difficult to think of any other company that has reinvented itself like Reliance in the past decade. However, it is a bold move, and many People will question whether the source of Reliance is of value in these industries, other than its status as one of the most successful Indian conglomerates,” it said.
Reliance is acquiring REC Solar Holdings from China National Bluestar for $771 million.
REC is a well-established manufacturer of polysilicon, PV cells and modules with plants in Norway and Singapore. Using REC’s technology, Reliance will build a new integrated solar manufacturing plant in Jamnagar and expand capacity globally.
Ambani’s firm is investing $45 million in Nexwaf to jointly develop and commercialize monocrystalline green solar wafers, and is acquiring 40 percent in leading solar EPC and O&M provider Sterling & O&M. Wilson Solar Limited (SWSL).
It has also signed an agreement with Steesdal of Norway for technology development and manufacturing of Steisdal’s hydrogen electrolysers in India. Another $50 million has been invested in US-based Ambari to develop and commercialize Ambari’s liquid metal batteries for energy storage.
Reliance is also in talks with Ambari to set up a large-scale battery manufacturing facility in India.
“Overall, Reliance is building a fully integrated end-to-end renewable energy ecosystem for customers through solar, battery and hydrogen. No other energy company is investing in an entire new energy value chain. But if Reliance can pull it off then the value creation and earning potential will be substantial,” Bernstein said.
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