What Reliance Could Target Next In Green Energy

Reliance Industries Ltd., the oil-to-retail conglomerate controlled by Asia’s richest man, has either bought or invested in a string of companies as part of its plan to build a renewable ecosystem. It may not be done yet.From original equipment makers to technology providers, Reliance New Energy has invested about $1.2 billion (Rs 9,000 crore). Yet, according to an Oct. 22 Bernstein report, there are still some pieces missing and billionaire Mukesh Ambani will look to tie up supply of components for hydrogen fuel cells to batteries.Reliance’s wave of acquisitions and partnerships followed its June AGM announcement that the group plans to invest $10 billion (Rs 75,000 crore) in the low-carbon energy ecosystem. That dovetails with its goal to become net-carbon zero by 2035.Under the plan, the company plans to build four giga-factories to make and integrate all critical components of the new energy ecosystem: solar photovoltaic modules; batteries; electrolyser and fuel cells.Reliance’s Green Energy InvestmentsThe company has invested in REC Solar Holdings AS, NexWafe GmbH, Sterling and Wilson Ltd., Stiesdal and Ambri Inc. These are aimed at gaining expertise and technology to build a fully integrated end-to-end renewables energy ecosystem through solar, batteries, and hydrogen. Such strategic investments will help Reliance start building capacity in India, Bernstein said.Recent acquisitions and how they help:Deal: 100% stake in REC Solar from China National Bluestar for $771 million (Rs 5,782 crore).Focus: To help RIL build a new integrated solar manufacturing plant in Jamnagar and expand capacity globally. Deal: $45 million (Rs 337 crore) investment in NexWafe.Focus: To jointly develop and commercialise at scale monocrystalline 'green solar wafers'. Deal: 40% interest in Sterling and Wilson Solar for a value of $380 million (Rs 2,850 crore).Focus: The company is a leading solar engineering, procurement and construction firm and equipment provider globally.Deal: $50 million (Rs 375 crore) investment in U.S.-based Ambri.Focus: To develop and commercialise liquid metal batteries for energy storage and set up a large-scale battery manufacturing facility in India. Partnership: A pact with Norway's Stiesdal.Focus: Technology development and manufacturing of hydrogen electrolysers in India.Reliance has also committed to becoming a large exporter of clean energy solutions to the rest of the world. It is targeting solar manufacturing of 100 gigawatt, around a third of India market, and green hydrogen costs of $1 a kilogram by 2030.Reliance’s Potential Green TargetsBernstein, however, said Reliance still needs the technology for fuel cell development. According to the research firm:Reliance could acquire or licence that from one of the industry leaders such as Plug Power Inc., Ballard Power Systems Inc., or Ceres Power. The company also needs to invest in key suppliers for the sector such as manufacturers of cathodes, separators and electrolytes for battery manufacturing.Reliance could also invest in membrane electrode assembly, catalysts, and bipolar plates for fuel cell manufacturing.ValuationsReliance Industries’ green energy business could be worth $36 billion (Rs 2.6 lakh crore) in the next five years, Bernstein said in the report, reiterating its earlier estimates.“The new energy business could contribute almost 10% of the company's total Ebitda by FY26 assuming all the factories are constructed and ramped up on the company's timeline,” the report said.Bernstein rates Reliance as 'outperform' with a target price of Rs 2,830, implying an upside potential of 7.9%.

What Reliance Could Target Next In Green Energy

RIL has announced a wave of acquisitions over the past few months that are expected to help the company in its new energy plans

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What Reliance Could Target Next In Green Energy

RIL has announced a wave of acquisitions over the past few months that are expected to help the company in its new energy plans

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