Reliance Industries Limited (RIL) on October 10 announced the acquisition of REC Solar Holdings for an enterprise value of $771 million from China National Bluestar (Group) Company Limited that seeks to become net carbon zero by 2035 and make India a hub for low-cost solar manufacture. With this, Reliance joins global Oil majors like Royal Dutch Shell Plc and BP Plc to become net zero-carbon firms by 2050 amid pressure from investors and climate activists.
Reliance is buying up to a 40% stake in India’s Sterling and Wilson Solar through its unit Reliance New Energy Solar Ltd (RNESL). The purchase of the Norwegian solar panel maker by RNESL follows the June announcement by RIL, operator of the world’s biggest refining complex, to invest $10.1 billion in clean energy over three years.
The company aims to build four “giga factories” to produce solar cells and modules, energy storage batteries, fuel cells and green hydrogen.
Mukesh Ambani, the owner of RIL and Asia’s richest man, plans to build a solar capacity of at least 100 gigawatts by 2030, contributing over a fifth of India’s target of installing 450 GW by the end of this decade.
According to a statement by Ambani, with the recent investments, Reliance is now ready to set up a global scale integrated Photovoltaic Giga factory and make India a manufacturing hub for the lowest cost and highest efficiency solar panels.
RNESL would invest $50 million in US energy storage company Ambri Inc as part of a $144 million investment by Reliance Industries, along with billionaire Bill Gates, investment management firm Paulson & Co and others, the company said in a statement in August.
As per data research firm IHS Markit, solar installations across the globe are ready to be set up for their fastest growth in five years.
Ambani said his firm would continue to invest and partner with global players to provide reliable and affordable power to customers in India and overseas markets.
He further said that Reliance would use REC’s technology in its PV Panel making the Giga factory with an initial annual capacity of 4 GW eventually rising to 10 GW.
