Published 16:01 IST, August 29th 2024
Reliance’s new energy business to match O2C earnings in 5-7 Years: Mukesh Ambani
Ambani projected that the New Energy business could achieve earnings comparable to the company’s Oil-to-Chemicals (O2C) segment within the next 5 to 7 years.
Reliance Industries Chairman and Managing Director Mukesh Ambani provided an extensive update on the company’s New Energy business, highlighting its potential to become a significant growth driver at 47th Annual General Meeting on Thursday, August 29. Ambani projected that the New Energy business could achieve earnings comparable to the company’s Oil-to-Chemicals (O2C) segment within the next five to seven years, a feat that took four decades for O2C to accomplish.
“With a number of growth drivers like Bio-energy, Solar energy, Green Hydrogen, and Energy storage, the New Energy business is the newest and most ambitious engine for growth and value creation at Reliance,” Ambani stated, underscoring the strategic importance of this initiative.
Ambani detailed several key projects within the New Energy business:
Bio-Energy Expansion: “The bio-energy business is expanding rapidly to reach 55 operating Compressed Biogas (CBG) plants by 2025, turning farmers from Anna Data to Urja Data, and creating over 30,000 direct and indirect jobs in rural areas.”
Solar Energy Production: Ambani announced that production of Reliance’s own solar photovoltaic (PV) modules would commence by the end of this year, with the first phase of integrated solar production facilities, including modules, cells, glass, wafer, ingot, and polysilicon, set to complete within the following quarters. The initial annual capacity is expected to be 10 GW.
Advanced Battery Manufacturing: “We have already begun construction of an integrated advanced chemistry-based battery manufacturing facility with a 30 GWh annual capacity at Jamnagar. Production will commence by the second half of next year,” Ambani said.
Green Hydrogen and Electrolyser Manufacturing: Ambani revealed plans for a fully automated, multi-GW electrolyser manufacturing facility on India’s west coast, slated for completion by 2026.
Investment Commitment: “We are on track to fully commit and invest up to ₹75,000 crore to establish this manufacturing ecosystem, extensively enabled by all emerging technologies including AI, IoT, Machine Learning, and Robotics,” Ambani said.
Renewable Energy Generation: Reliance has leased arid wasteland in Kutch, with the potential to generate about 150 billion units of electricity over the next decade, providing nearly 10 per cent of India’s energy needs. Ambani also mentioned significant progress in developing solar generation projects that will deliver round-the-clock renewable energy (RE-RTC) at a GW scale, beginning in 2026.
Coastal Infrastructure Development: The company has secured access to nearly 2,000 acres of land at Kandla port, which will complement its existing marine infrastructure at Jamnagar. This coastal infrastructure will enhance Reliance’s ability to produce, store, evacuate, and ship green fuels domestically and globally.
Ambani expressed strong confidence in the potential of the New Energy business, concluding, “We believe that our New Energy business will be truly unique—delivering cash flows that are less cyclical and more predictable. I am, therefore, confident that in the next 5 to 7 years, our New Energy growth engine can aim to deliver an earning capacity, like what our existing O2C business earns and what it has achieved over the last four decades,” Ambani said.
Updated 16:01 IST, August 29th 2024