- 30 Aug 2022
- ICICIdirect Research
RIL reiterates focus on high growth, scalable new energy businessRELIANCE - 2203 Change: -44.50 (-1.98 %)
News: In last year's AGM, RIL had announced its mega foray into the new energy business by focusing on four pillars (gigafactory); viz. a) photovoltaic panels, b) energy storage, c) green hydrogen, d) fuel cell systems. In the recently concluded AGM, RIL has added the fifth pillar (giga factory) in the form of a foray into power electronics.
View: From last AGM to this, RIL has already made tangible progress on many of the pillars mentioned. For instance, it has entered into strategic partnerships in energy storage battery domain, including: (1) Lithium Works [Lithium Iron Phosphate (LFP) solutions], (2) Faradion (sodium-ion battery chemistry), (3) Ambri . On photovoltaic side, acquisition of REC Solar is doing well. Further, it plans to increase capacity from 1.2 GW to 1.8 GW coupled with upgradation of technology with a clear focus to stay ahead on the product tech curve. The cell & module capacity at Jamnagar is likely to commence operations from 2024, which will be a first of its kind quartz to module facility. Partnering with Stiedsdal will help accelerate cost reduction of green hydrogen while RIL is also scouting for partnerships in the field of gigawatt electrolyser manufacturing. We believe RIL is on the right track to diversify away from its conventional oil & gas business by creating an entire manufacturing ecosystem backed by strong technological partnerships and acquisitions. Key distinguishing factor of the company, typical attributes of any of its new venture, is the scale at which it is aspiring to capture the entire green energy value chain coupled with strong technological backbone, which will ensure value creation for all stakeholders.