Reliance Industries Ltd (RIL) has forged a significant technology partnership with Norway’s Nel ASA to expedite its foray into new energy investments. This alliance is poised to play a pivotal role in facilitating RIL’s transition towards green energy, particularly through the production of green hydrogen.
On May 21, RIL finalized a technology licensing agreement with Nel ASA, securing an exclusive license for Nel’s alkaline electrolysers in India. Additionally, RIL gains the authority to manufacture Nel’s alkaline electrolysers globally for internal purposes.
Morgan Stanley views the partnership as mutually advantageous for RIL and Nel. It aligns with RIL’s aspirations to accelerate its new energy initiatives, construct an integrated energy vertical, and progressively decarbonize its portfolio. For Nel, this collaboration offers access to revenue streams in the Indian market that were previously inaccessible, potentially diversifying its revenue beyond large electrolyser orders.
Nel ASA currently commands a 10-15% market share in electrolysers globally, with significant deliveries projected for 2023-2024. The agreement enables Nel to leverage equipment procurement from Reliance for its own projects while continuing to serve the Indian market with non-covered technology platforms.
Executing on new energy plans is deemed crucial for RIL’s value creation trajectory in the coming decade. This agreement underscores RIL’s commitment to its ambitious $75 billion investment in renewables infrastructure, as announced by Mukesh Ambani in 2022. With a focus on building a robust green energy business, Reliance aims to cater to India’s burgeoning demand for equipment essential to its green energy revolution.
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