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Informist, Thursday, Aug 29, 2024

 

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--RIL Ambani: To start solar photovoltaic modules production by yr-end

--RIL: Solar module production units to have 10 GW/yr capacity initially

--Mukesh Ambani: To set up battery giga factory by 2026

--Mukesh Ambani: Begun building battery mfg unit in Jamnagar

--Mukesh Ambani: Jamnagar battery unit to have 30 GWh annual capacity

--Mukesh Ambani: To establish 100 compressed biogas plants in 5 yrs

--Mukesh Ambani: To set up bio-energy R&D unit in Jamnagar

 

MUMBAI – Reliance Industries Ltd expects its earnings from the new energy business to be similar to the oil and chemicals business in the next 5–7 years, Chairman and Managing Director Mukesh Ambani said at the company's annual general meeting today.

 

"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 (oil to chemicals) business earns and what it has achieved over the last four decades," Ambani said.

 

According to Ambani, India is confronted with a pressing energy "trilemma"--the availability of affordable, sustainable, and self-sufficient energy. This energy "trilemma" will become more acute as the country's economy becomes larger and grows faster. "In 2023, India generated nearly 1,600 bln units of electricity. To meet India's growth projections, this number needs to double in the next 10 years, and green and clean energy will need to provide the lion's share of this growth," he said. 

 

In 2021, Reliance Industries had announced its plan to invest 750 bln rupees in new energy and materials business. Today, Ambani said that the company was on track to fully commit and invest up to 750 bln rupees to establish this manufacturing ecosystem. "Our complete ownership and automation of the integrated value chains will allow us to maximise margins that are higher than those of standalone, non-integrated players," he said.

 

Solar 

Reliance Industries is expected to complete the first phase of its integrated solar production facilities in the coming quarters. These facilities will produce modules, cells, glass, wafer, ingot, and polysilicon, with an initial annual capacity of 10 GW. The company aims to commence the production of its solar photo-voltaic modules by the end of this year. 

 

"Our giga-factory is designed for modular expansion at minimal cost and in the shortest time possible. We have fully integrated and indigenised the HJT (Heterojunction technology) from REC Singapore, our wholly owned subsidiary, to develop 1st gen bifacial solar panels with cell efficiency exceeding 26%," he said. 

 

Further, to store solar energy and make it available round the clock, the company has begun construction of an integrated advanced chemistry-based battery manufacturing facility with a 30 GWh annual capacity at Jamnagar. The facility is expected to become operational by the second half of next year. 

 

"We will start by assembling Battery Energy Storage Systems for utility scale applications and pack solutions for residential, commercial, industrial, telecom, and mobility markets. Progressively, over the next few quarters, we will integrate backward to cell manufacturing and eventually to battery chemicals production. This will create the world's only fully integrated battery giga-factory, driving synergies across the value chain," Ambani said. Integration of energy storage with wind and solar power generation is critical for providing grid-connected, round-the-clock electricity.

 

Reliance Industries has also leased arid wasteland in Kutch, just 250 km from Jamnagar. This wasteland has the potential to generate about 150 bln units of electricity in the next 10 years, providing nearly 10% of India's energy requirements. "We have already begun significant project development work and are building our own transmission infrastructure to bring online solar generation projects that will deliver stable, renewable energy on a round-the-clock basis at GW (gigawatt) scale, in a phased manner commencing 2026," Ambani said.

 

Reliance Industries has also secured access to nearly 2,000 acres of land at Kandla port, which complements its existing marine infrastructure at Jamnagar. "This integrated coastal infrastructure will provide us with an unparalleled competitive advantage for the production, storage, evacuation, and shipping of green fuels to various markets in India and across the globe," Ambani said.

 

Bioenergy, Green Hydrogen

Reliance Industries is expanding investments in bioenergy to reach 55 operating compressed biogas plants by 2025. These 55 integrated compressed biogas plants are expected to increase the incomes of farmers and are likely to generate over 30,000 direct and indirect jobs in rural areas, Ambani said. The company aims to establish 100 compressed biogas plants in 5 years.

 

The company has also initiated an energy plantation pilot on 1,000 acres of arid wasteland to establish a first-of-its-kind integrated compressed biogas plant. Further, it aims to set up the world's largest bioenergy deep-tech research and development centre at Jamnagar.

 

Speaking about Reliance Industries' plans for green hydrogen and green fuels production, Ambani said, "Our deep understanding of electro-chemistry, combined with our ability to industrialise at scale and integrate with lowcost solar energy, gives us a unique advantage in delivering green hydrogen and green fuels at the most economical cost."

 

"We have begun work on establishing a fully automated, multi-GW (gigawatt) electrolyser manufacturing facility on the west coast of India, which will be ready by 2026...The facility is built using Industry 4.0 standards and will be expandable in a modular fashion to meet market demand," Ambani said. 

 

Reliance Industries's vision to make India a global leader in green and clean energy is likely to turn into reality within the timelines the company had set, Ambani said. Today, Jamnagar is the energy capital of the world, and by 2025 it will also become the cradle of the company's new energy business.

 

Today, shares of Reliance Industries closed 1.5% higher at 3,041.85 rupees on the National Stock Exchange. The company's annual general meeting started during market hours. End

 

Reported by Darshan Nakhwa 

Edited by Akul Nishant Akhoury

 

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