Indian conglomerate Reliance Industries (RIL) and Brookfield Asset Management have signed a Memorandum of Understanding (MoU) aimed at exploring opportunities to manufacture renewable energy and decarbonisation equipment in Australia. The MoU’s primary objective is to accelerate and de-risk Australia’s energy transition by enabling local production of clean energy equipment, including photovoltaic modules, long-duration battery storage, and components for wind energy. This move is expected to support Australia’s transition towards a net-zero future.
Brookfield’s Plan for Energy Transition
As part of its broader strategy for energy transition, Brookfield had previously signed a binding agreement with EIG to acquire Origin Energy in March. The proposed acquisition iscurrently undergoing relevant approvals processes. Brookfield, along with institutional partners and global investors GIC and Temasek, has outlined a plan to invest between A$20 billion and A$30 billion over the next ten years to accelerate the energy transition in Australia.
Local Manufacturing for Emission Reduction
The energy transition presents an opportunity for Australia to bring advanced manufacturing processes from overseas, ensuring a stable supply of critical equipment for the transition. By localizing manufacturing, the aim is to expedite the reduction of Australia’s emissions and significantly contribute to job creation. These global partnerships in manufacturing are being established to meet the ever-reducing timeline for Australia to achieve its first emissions-reduction targets by 2030, according to Luke Edwards, Brookfield Renewable Head of Australia.
A Boost to Global Green Energy Movement
Anant Ambani, director of Reliance New Energy, expressed confidence that the collaboration between Reliance and Brookfield would play a crucial role in boosting the global green energy movement. He emphasized that Reliance is actively seeking investment opportunities in India and worldwide, and through this partnership, they aim to explore avenues in green energy in Australia, thereby accelerating the nation’s transition to a Net Zero future.
Reliance Industries’ Focus on Clean Energy Sector
The clean energy sector in India is expected to grow significantly, becoming a $200-billion market with a cumulative spending of $2 trillion by 2050. Reliance Industries sees this sector as a key trigger for its future growth. Financial services firm Bernstein has estimated that the clean-energy business could be worth Rs 200 a share for Reliance Industries today, with considerable room for expansion in the future. It predicts that Reliance could potentially achieve $10 billion of revenue from its new energy business by 2030, representing 40 percent of the total addressable market.
With the MoU signed, the focus now shifts towards fostering innovation and collaboration between the two companies to drive the renewable power and decarbonisation equipment manufacturing initiatives in Australia. This development marks a significant step in the ongoing efforts to transition towards a greener and more sustainable energy landscape.
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