Mukesh Ambani plans to repeat telecom feat in new energy business

Mukesh Ambani plans to repeat telecom feat in new energy business

Mukesh Ambani is offering rock-bottom tariffs to shake up new energy business

New Delhi:

Reliance Industries Ltd., which shook the telecom industry by offering rock-bottom tariffs, is looking to repeat that feat in the green energy business, where its billionaire chairman Mukesh Ambani beat all existing growth engines in 5-7 years. See promise.

After promising Rs 6 lakh crore on green energy, Mr Ambani says RIL will increase investment in this business which will start in the next 12 months.

“Our investments in the green energy value chain will gradually begin over the next 12 months, which will increase over the next few years,” Ambani, RIL’s chairman and managing director, said in the company’s latest annual report.

“This new growth engine holds great promise to outperform all our existing growth engines in just 5-7 years.” Ambani is leading Reliance towards clean energy in an effort to diversify away from its traditional oil refining and petrochemical businesses.

The firm is building giga-factories for the entire green energy value chain, from solar power generation to green hydrogen production to its distribution and consumption.

This is with a view to bring down the existing high cost to an affordable extent.

The tycoon has a track record of implementing business transformations and has transformed Reliance from an energy giant to consumer services over the past decade.

“FY 2021-22 marked the beginning of Reliance’s green transition, which will make India the world’s leading green energy producer,” Ambani said.

Ambani says that Reliance will develop green energy solutions so that they can be made available to all at the most affordable cost. “We know that it is the most important factor in the adoption of any new technology and the scale of societal benefits. Reliance has embarked on this journey with a vision to replicate what it has achieved in wireless broadband.”

Jio, the firm’s telecom venture, grew to become the number 1 operator in the country within years of its launch as it garnered customers by offering free voice calling and dirt cheap data on mobile phones.

“Just as India has the world’s most affordable wireless broadband today, in this decade we will have the world’s cheapest green energy,” he said. “And then these solutions will be exported to other countries, helping them with their carbon emissions.”

Leveraging its world-class execution capability and strong debt-free balance sheet, Reliance has started investing in the clean energy sector.

It has commenced development of four factories at the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat and completed acquisitions and investments of over Rs 5,500 crore to build capacities in new energy.

“Last year, Reliance announced a capex of $10 billion over three years to kick-start this initiative,” he said.

The firm entered into several partnerships including equity investments with local and international corporates with unparalleled technical and execution capabilities across the green energy value chain.

Reliance’s partnerships include companies such as Ambari in the US, Faradion in the UK and Lithium Works in the Netherlands in the energy storage space.

Similarly, Reliance invested in Germany’s NexWafe, a leader in next-generation technology to produce the monocrystalline silicon wafers needed to make solar panels. It also acquired promoters’ stake in REC Solar – the global technology leader in solar panel manufacturing.

Reliance bought a 40 percent stake in Sterling & Wilson Renewable Energy – one of the world’s leading EPC turnkey contractors in large-scale solar projects.

In the hydrogen ecosystem, Reliance joined hands with US-based Chart Industries to set up the India H2 alliance to commercialize hydrogen technology and develop the supply chain in collaboration with other Indian stakeholders.

It entered into an agreement with Denmark’s Stisdal A/S for its innovative next-generation electrolyzer technology, which has the potential to dramatically reduce the cost of producing hydrogen from pure water.

Ambani said, “Also, we have worked on four giga-factories at the Dhirubhai Ambani Green Energy Giga Complex to set up globally production capacity for solar panels, energy storage systems, electrolysers and fuel cells spread over 5,000 acres in Jamnagar. began.”

Reliance will also invest in creating an ecosystem of thousands of small and medium scale project consultants and installers across India to set up green power generation projects in every nook and corner of the country.

Similarly, Reliance will undertake large giga watt scale turnkey green power projects on its own for power generation companies or large investors.

“With these collaborations and giga-factories, Reliance is poised to attain a uniquely integrated position in the green energy value chain globally,” he said.

To achieve its net carbon zero target by 2035, Reliance began the process of demerging the petcoke gasification complex into a wholly owned subsidiary, with the aim of remodeling the unit and driving value through future collaborations. Had to unlock.

“With Reliance switching to green and renewable energy for its energy needs, syngas will become available for upgrading high-value petrochemicals and hydrogen fuels,” he added. “All these steps will significantly reduce the carbon footprint of the Jamnagar campus.”

At the same time, Reliance continues to expand its existing businesses to new frontiers of technology, innovation, scale and execution.


Indian Lekhak

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