Sat. Jan 22nd, 2022

Mukesh Ambani’s Reliance Industries said it plans to invest $ 76 billion in clean energy projects, a dramatic increase from its previous $ 10 billion commitment.

By Bloomberg

The conglomerate led by Mukesh Ambani, Asia’s richest man, has announced plans to invest $ 76 billion in clean energy projects, dwarfing an earlier $ 10 billion commitment by the world’s largest fossil fuel billionaire.

Reliance Industries Ltd, which is controlled by Ambani, has signed agreements with the state government of Gujarat for a total investment of 5.96 trillion rupees ($ 81 billion), according to a stock market launch on Thursday. Of this, about 5 billion rupees will be used over the next 15 years to build 100 gigawatts of renewable power projects and a green hydrogen network, while 600 billion rupees will be for factories that make solar modules, hydrogen electrolysers, fuel cells and storage batteries. filing said.

The remaining amount will be spent on the retail-to-refining group’s new and existing projects, including upgrading its telecommunications network for 5G services and expanding its consumer retail businesses. Reliance has already “started the process of exploring land” for its renewable energy power projects and has requested the Gujarat administration for 450,000 hectares (182,110 hectares) in the arid Kutch region.

Although the investment treaty is currently only a memorandum of understanding, it outlines the scope of Ambani’s green ambitions and is a big step above the $ 10 billion investment over three years he announced in June. Ambani is in the midst of transforming its fossil fuel-powered empire and turning to green energy and digital technology.

Ambitious target

These projects will also strengthen Reliance’s target of making its operations carbon neutral by 2035 – an ambitious target for a company that has derived 60% of its revenue from oil refining and petrochemicals.

The announcement follows the conglomerate led by billionaire Gautam Adani’s deal with South Korean steel giant Posco to explore business opportunities in India, including the construction of a green steel plant in Gujarat, with a potential investment of $ 5 billion. Adani has committed to investing a total of $ 70 billion by 2030 in its green energy value chain.

Both the billionaires and their ability to talk about their green energy commitments are crucial if the government led by Narendra Modi is to achieve its target of making the country net carbon zero by 2070.

Like their global counterparts, Reliance and Adani groups, which have made their fortunes from fossil fuels, are now aggressively expanding their clean energy footprint amid increasing pressure to join the fight against climate change.

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