Mukesh Ambani, chairman of Reliance Industries, holds the title of Asia’s wealthiest individual. The 67-year-old industrial magnate amassed his staggering fortune primarily through ventures in the fossil fuel sector. According to Forbes, Ambani’s net worth stands at an astonishing Rs 943950 crore. However, the business mogul is now pivoting toward renewable energy, as evidenced by Reliance Industries’ latest agreement with Norway’s Nel ASA to source cutting-edge technology for manufacturing electrolysers aimed at producing green hydrogen.
Green hydrogen, regarded as a critical component in achieving emissions reduction goals, is produced by splitting water into hydrogen and oxygen using electricity generated from renewable sources via an electrolyser. The production of green hydrogen is integral to Ambani’s ambitious vision for a sustainable future.
Nel ASA, headquartered in Oslo, confirmed the partnership through a statement that highlighted the unique provisions of the agreement. The deal grants Reliance an exclusive license for Nel’s alkaline electrolysers within India. Furthermore, it allows Reliance to manufacture these electrolysers globally for its own operations. This collaboration marks a significant milestone in Reliance’s journey toward green energy, as it seeks to establish itself as a major player in the renewable energy landscape.
Reliance Industries, an oil-to-telecom conglomerate, has set a target to become a net-zero carbon emissions company by 2035. This target is notably earlier than that of any other energy firm in the region. The company plans to produce 100 gigawatts of renewable energy by the end of the decade, which represents one-fifth of India’s target for non-fossil fuel capacity by 2030. The Indian government has set a comprehensive goal of achieving 500GW of installed renewable energy capacity by 2030, with solar power expected to contribute a substantial 280GW.
In a public statement, Håkon Volldal, President and CEO of Nel ASA, expressed his pride and optimism regarding the collaboration with Reliance. “The signing of this agreement is a great milestone in Nel’s history.
. Reliance is an impressive company with enormous ambitions as a global producer of renewable hydrogen. I am proud that they have selected Nel as their technology partner,” said Volldal. He further elaborated on how this partnership will create new revenue streams for Nel from a rapidly expanding market that would have been challenging to access independently.
Reliance’s status as a Fortune 500 company and India’s largest private sector corporation underscores its capacity for executing large-scale projects and robust investments in technology and innovation. The collaboration will also focus on future performance improvements and cost optimization via research and development (R&D), value engineering, standardization, and modularization. These efforts aim to enhance the competitiveness of the alkaline technology platform.
The agreement has mutual benefits, allowing Nel to procure equipment from Reliance for its projects, while still retaining the ability to serve the Indian market with technologies beyond the scope of this specific agreement. Both companies stand to gain significantly from the collaborative efforts focused on developing and deploying green hydrogen solutions at scale.
The announcement has garnered considerable attention within the industry, as stakeholders recognize the transformative potential of green hydrogen and the substantial investments being made by both Reliance and Nel ASA. As part of its broader renewable energy strategy, Reliance has committed a whopping USD 75 billion in 2022 towards developing renewables infrastructure. This includes the construction of generation plants, solar panels, and electrolyzers.
Experts believe this move could set a precedent, encouraging other industrial giants to accelerate their transition toward sustainable energy solutions. The push for green hydrogen production aligns with the global emphasis on reducing carbon footprints and achieving climate-related goals. As countries worldwide strive to meet their respective emissions reduction targets, innovations and collaborations such as this one between Reliance and Nel could play a pivotal role.
In summary, Mukesh Ambani’s Reliance Industries is poised to make significant strides in the green energy sector through its strategic partnership with Norway’s Nel ASA. This move not only fortifies Reliance’s commitment to sustainability but also positions the company as a key contributor to India’s renewable energy ambitions and the global green hydrogen market.
