Indian refining giant Reliance Industries unveils new clean energy business strategy

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New strategy coincides with induction of chair of Saudi Aramco as an independent director on Reliance’s board

Mukesh Ambani. Picture: FRANCIS MASCARENHAS/REUTERS

“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. “With this capex plan spread over three years Reliance will reap benefit from its green energy push over the next many more years. Currently investor appetite is good for businesses that are much more carbon conscious,” said Mayuresh Joshi, head of equity research at research firm William O'Neil.

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 would provide growing returns over several decades. “We will achieve our goals by enabling a platform to source long-term global capital for these investments at the most attractive terms,” he said.

 

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