Mukesh Ambani launches another Jio: RIL enters new energy biz with global aim; to invest Rs 75,000 cr

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Updated: June 24, 2021 4:44 PM

Reliance Industries Ltd Chairman Mukesh Ambani today laid out the roadmap, detailing how he plans to propel his new energy business and put India on the global renewable energy map.

Reliance New energy, mukesh ambaniMukesh Ambani said the new energy business will bridge the energy divide. (Image: REUTERS)

Reliance Industries Ltd Chairman Mukesh Ambani today laid out the roadmap, detailing how he plans to propel his new energy business and put India on the global renewable energy map. “In 2016 we launched Jio with an aim of bridging the digital divide in India. In 2021, we are launching the new energy business with the aim of bridging the green energy divide in India,” Mukesh Ambani said. The strategy roadmap put forth by Mukesh Ambani will see his oil-to-telecom conglomerate spend Rs 75,000 crore over three years to set up four Giga factories to develop a fully integrated, end-to-end renewables energy ecosystem.

“The age of fossil fuels that powered economic growth globally for nearly three centuries can not continue much longer. Our world has only one option, rapid transition to clean, green, and renewable energy,” Mukesh Ambani said at the 44th AGM of Reliance Industries. His plan for the new energy business will see RIL transform Jamnagar into a cradle for its business. “Jamnagar was the cradle of our old energy business. Jamnagar will also be the cradle of our new energy business,” he added.

Mukesh Ambani’s three-part plan plan

The New Energy business plan will entail setting up four Giga factories. These will manufacture and fully integrate all the critical components of the New Energy ecosystem. Mukesh Ambani said that Reliance will use one of the factories for the production of solar energy — building an integrated solar photovoltaic module factory. RIL will further build an advanced energy storage battery factory, an electrolyser factory, and a fuel cell factory. 

“Over the next 3 years, we will invest over Rs 60,000 crore in these initiatives. Reliance will thus create and offer a fully integrated, end-to-end renewables energy ecosystem,” Ambani said. 

Further, the second stage of the company plan will see RIL invest Rs 15,000 crore in value chains, partnerships and future technologies, including upstream and downstream industries taking the entire investment of Rs 75,000. Under this plan, RIL will also support independent manufacturers with the right capabilities to be part of this nationwide ecosystem.

Lastly, Mukesh Ambani said that RIL will repurpose its significant engineering, project management and construction capabilities combining physical and digital technologies to deliver world-class renewable energy solutions. Reliance plans to go net carbon zero by 2035, 15 years ahead of targets set by energy majors across the world.

“The announcement of Rs 75000 cr investment in the next 3 years in 4 Giga factories will mark a seismic shift in India’s clean energy pursuit,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “The affirmation that RIL will make clean energy a truly global business is good news not only for the planet but for shareholders too,” he added.

New Materials business

Reliance Chairman Mukesh Ambani also put forth his vision for the new materials business. “Reliance is also evolving a vision for New Materials and Green Chemicals. We will kickstart this by strategically investing in India’s first world-scale Carbon Fibre plant for supporting our hydrogen and solar ecosystems. You will hear more about this in the months to come,” he said. 

RIL’s green energy focus will also benefit its oil to chemical business. Mukesh Ambani said that RIL will use solar energy on an economically attractive basis to decarbonise their existing O2C business and accelerate the journey to become net carbon zero. Reliance will also use green hydrogen and CO as raw materials to develop a road map for new Green Chemicals, 2 Green Fertilizer and e-fuels. “Thus, we will transform our legacy business into a sustainable, circular and net zero carbon materials business. One that will provide growing returns over several decades. And we will do this by repurposing our existing assets to extend their economic life and earning capacity. In doing so we will have no legacy asset write-downs in the coming years,” he added.

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