Reliance Industries promises $80 billion for green projects in Gujarat

01 Jan 2022

As India's largest fossil-fuel refiner attempts to extend its dominance amid a global transition to renewables, Reliance Industries Ltd (RIL) committed to invest a staggering Rs 6 trillion or $80 billion in Gujarat over the next 10 to 15 years for its clean energy companies.

RIL said it inked an agreement with the Gujarat government for a total investment of Rs 5.955 trillion in various projects in the state, which is home to the world's largest refinery complex, which it originally revealed plans to diversify into clean energy in June.

According to RIL, the projects are estimated to generate one million direct and indirect job opportunities in Gujarat. In conjunction with the state government, RIL is looking for land for a 100GW renewable energy generating plant in Kutch, Banaskantha, and Dholera, and has requested 450,000 acres in Kutch.

RIL is shifting its focus from refining and petrochemicals to renewable fuels, which already account for more than half of its revenue. Last year, the business announced plans to invest over Rs 75,000 crore in the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar to create four giga-factories for solar PV modules, electrolyzers, fuel cells, and energy storage over the next three years.

Reliance New Energy Solar Ltd, a unit of Reliance Industries, completed four deals and formed a partnership in October to promote its sustainable energy goals.

It paid $771 million for REC Solar Holdings AS from China National Bluestar Co Ltd to expand its panel and polysilicon capabilities and get access to a global client base.

It also bought a 40% share in engineering, procurement, and construction (EPC) player Sterling and Wilson Solar, as well as NexWafe's technology to supply competitively priced PV panels. It also put $50 million into Ambri Inc, an energy storage business in the United States.

RIL received a $736 million equivalent green loan from five banks in December to fund its acquisition of REC Solar Holdings, marking the retail-to-telecom conglomerate's first such financing.

In the same month, RIL agreed to pay £100 million for Faradion Ltd, a company established in the United Kingdom.

After Ambri, this is RIL's second purchase in the battery value chain.

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