With the completion of four deals in clean energy sector Reliance Industries Ltd is set to expand its capabilities in solar energy industry. Acquisition of REC Solar Holdings AS from China National Bluestar Co. Ltd. at an estimated value of USD 771 million has significantly drove Reliance Industries Ltd abilities to expand its reach to global customer base in panels and polysilicon. The acquisitions are triggered by NexWafe’s technology located in Germany that offer PV panels at competitive price and to install these rooftops & large-scale panels Reliance Industries Ltd will hold its 40% stake in EPC player Wilson Solar and Sterling. Also, partnership with energy storage company Ambri Inc. for storage solutions would help to get comprehensive solutions on solar value chain.
Reliance Industries Ltd.’s capability to contest with Chinese players has been a major factor investors were looking over the period. However, the NexWafe technology will surely help Reliance Industries Ltd. not only to get lower cost for PV manufacturing at large scale, but also helps to lower the cost of hydrogen product that ultimately improve green ammonia economics substantially.
Acquisition of REC would offer RIL to make a global footprint that will mostly be benefited by increasing demand for module globally, which is expected to double by 2025. Goldman Sachs, in recently published report said “More importantly, the partnership and acquisitions will help to drive technology for integrated module manufacturing in India, where solar installation is expected to grow from 5.5GW to 31.5GW by 2030
Reliance Industries Ltd. largely generates its profit from petrochemicals and refining. However the future need for clean energy solutions has pushed company to invest in green energy projects. Company has plant to set up the complex of 5,000 acres in Jamnagar by the name of Dhirubhai Ambani Green Energy. These complexes will include giga factories for electrolyzers, integrated solar PV modules, energy storage, and fuel cells. The company also has plans to set up solar energy of 100GW by 2030.
In Oct 2021, Reliance Industries Ltd. capitalized USD 29 million during Series C financing round as a strategic principal investor in Germany-based NexWafe GmbH. This will complete the technology necessity for end-to-end solar PV module manufacturing.
The company has also gained technology for hydrogen electrolyzers by its partnership with Denmark-based privately owned Stiesdal AS. These electrolyzers are used to produce green hydrogen.
Reliance Industries Ltd. is seeing extension of the agreement for fuel cells with Stiesdal for its fuel cell giga factory. The fuel cells transform hydrogen to electricity to generate static and mobile electricity.
Reliance Industries Ltd. has aimed to manufacturing green hydrogen at cost of USD 1 per kg in next couple of years. This will be highly competitive to the present cost of USD 5 per kg for the industry.