Mukesh Ambani’s Reliance Industries Ltd. has expanded its dominance in alternative energy through the efforts of an oil-retail consortium with a Norwegian solar panel maker and an Indian manufacturer developing renewable projects.
Reliance, the richest controlled company in Asia, has paid $ 771 million in corporate value to solar panel maker REC Solar Holdings AS. Hours later, Reliance said it had agreed to buy 40% of billionaire Balonji Mistry’s Sterling & Wilson Solar Ltd for $ 372 million when it closes in Mumbai on Friday.
The two acquisitions – acquired by REC Solar from China’s national Bluestar Group – will help Reliance New Energy Solar expand into green energy markets worldwide, including in the US, Europe, Australia and elsewhere in Asia. Mr Ambani’s drive with Prime Minister Narendra Modi’s goal is to provide India with 450 times more renewable energy capacity by the end of this decade, the world’s fourth largest greenhouse gas emitter.
Mr Ambani promised in June that he would spend $ 10 billion on alternative energy for three years. New investments will transform the federation into cleaner fuels. Reliance derives almost 60% of its annual revenue from its oil-related business. Saudi Aramco is also in talks to buy about 20% stake in Reliance’s refining and chemical business.
According to the report, REC manufactures solar grade polysilicon and solar panels and modules at facilities in Norway and Singapore. Reliance manufactures metal silicon and solar panels using REC technology at a gigafactory in Jamnagar, Gujarat. The annual capacity of the factory will be expanded from 4 GW to 10 GW.
Sterling & Wilson has a presence in 24 countries and has installed 11 gigawatts of solar power projects, Reliance said in a separate statement.
“This is in line with our strategy to invest in new and advanced technologies and operational capabilities aimed at achieving Reliance’s target of operating 100 GW of clean and green energy by the end of this decade,” Mr Ambani said in a statement.