Reliance Industries (RELI.NS), operator of the world’s biggest refining complex at Jamnagar in western India, will invest $10.1 billion in clean energy over three years in a pursuit to become a net carbon zero company by 2035.
Reliance’s plan mirrors strategies of global oil majors such as Royal Dutch Shell Plc (RDSa.L) and BP Plc (BP.L) that have set a goal to become net zero carbon by 2050 amid pressure from investors and climate activists.
“The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer,” Chairman Mukesh Ambani, Asia’s richest man, said at a shareholder meeting on Thursday.
The oil-to-telecoms conglomerate will invest 600 billion rupees to build four ‘giga factories’ at Jamnagar for production of solar cells and module, energy storage batteries, fuel cells and green hydrogen, Ambani said.
It will also invest 150 billion rupees in value chain and other partnerships relating to its new renewable energy business, he said, adding a transformation of legacy business into sustainable and net zero carbon business will provide growing returns over several decades.
Reliance will also build solar capacities of at least 100 gigawatts (GW) by 2030, accounting for over a fifth of India’s target of installing 450 GW by the end of this decade.
[Nidhi Verma and Sudarshan Varadhan]