Reliance Industries Ltd (RIL) pledged to invest ₹75,000 crore in clean energy setting up four 'giga' factories to make solar photovoltaic cells, green hydrogen, batteries and fuel cells over the next three years, reported The Hindu.
With this announcement, it has become the latest oil company to announce a mega push into renewables as the environmental impact of fossil fuels comes under increasing scrutiny from investors and regulators. Reliance Industries Ltd (RIL) Chairman Mukesh Ambani announced in the 44th Annual General Meeting (AGM) with his shareholders that the company will "target to achieve costs that are lower in the world to ensure affordability of our solar modules" and "enable at least 100GW of solar energy capacity by 2030".
'Net Zero Carbon Emissions By 2035'
The company earns about 60 per cent of the revenue from hydrocarbon fuelled energy operations and announced the target of becoming net-zero carbon emissions by 2035. This move comes during a period when energy giants around the world are already under pressure to reduce their carbon emissions. In the meeting, Ambani said that Reliance would build into creating utilities, ancillary units and partnerships for creating new solar ecosystems.
Reliance will invest ₹ 60,000 crore in these facilities in the next three years. An additional ₹ 15,000 crore investment is planned for developing a value chain into partnerships and future technologies. RIL's new strategy will include creating two or more supplementary divisions: a dedicated renewable energy project management and construction dvision and a dedicated renewable energy project finance division. These renewable complexes will be set up on 5,000 acres and amongst the most extensive integrated facilities in the world.
RIL's solar plan is a competition to the combined might of companies such as Adani Solar, Vikram Solar, Waaree Energies and more. It is more than six times bigger than the current domestic module manufacturing capacity of 15GW. Mukesh Ambani also mentioned that the deal to sell a 20 per cent stake in the company's oil-to chemical unit to Saudi Aramco is expected to conclude this year. Saudi Aramco Chairman PIF Yasir Othman Al-Rumayan will join the board of RIL as a precursor to the $15bn deal.