Green buy: Reliance Industries buys REC Solar for Rs 5,800 crore

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October 11, 2021 4:45 AM

The technology will then be used to replicate such complexes globally in markets such as the US, Europe and Australia, the company said in a statement.

The acquisition by RIL's wholly owned subsidiary, Reliance New Energy Solar, will help the company set up its integrated metallic silicon to PV panel manufacturing giga factory in Jamnagar, starting with 4 GW per annum capacity and eventually taking it to 10 GW.The acquisition by RIL's wholly owned subsidiary, Reliance New Energy Solar, will help the company set up its integrated metallic silicon to PV panel manufacturing giga factory in Jamnagar, starting with 4 GW per annum capacity and eventually taking it to 10 GW.

Reliance Industries (RIL) on Sunday acquired REC Solar Holdings AS (REC Group) from China Bluestar (Group) Co for an enterprise value of $772 million or Rs 5,800 crore.

The acquisition by RIL’s wholly owned subsidiary, Reliance New Energy Solar, will help the company set up its integrated metallic silicon to PV panel manufacturing giga factory in Jamnagar, starting with 4 GW per annum capacity and eventually taking it to 10 GW. The technology will then be used to replicate such complexes globally in markets such as the US, Europe and Australia, the company said in a statement.

REC, with an employee strength of 1,300, has three manufacturing facilities – two in Norway for making solar grade polysilicon and one in Singapore for producing PV cells and modules. RIL will have a ready access to REC’s existing capacities and further support setting up under-construction 2 GW capacity of cells and modules in Singapore. It will also set up a greenfield capacity of 2GW in France and another 1 GW capacity in the US, the company said.

On June 24, 2021, RIL chairman Mukesh Ambani had announced an investment of Rs 75,000 crore to set up four clean energy giga factories and supply chain facilities to meet India’s potential demand in solar modules and cells, battery storage, electrolysers for green hydrogen and fuel cell batteries.

The latest acquisition is in line with RIL’s strategy to invest in new and advanced technologies and operating capabilities to achieve RIL’s goal of enabling 100 GW clean and green energy before the end of this decade, Ambani said. “This will constitute the largest contribution by a single company to Prime Minister Narendra Modi’s target for India to produce 450 GW renewable energy by 2030. It will enable India to become a world leader in green energy transition to overcome the climate crisis,” he said.

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