Reliance New Energy acquires REC Solar Holdings for $771 million

Business

The Hindu 10 October, 2021 - 06:14am 2 views

Reliance New Energy Solar Ltd (RNESL), a wholly owned subsidiary of Reliance Industries Ltd (RIL), has announced the acquisition of 100% shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an Enterprise Value of $771 million.

“REC’s Alpha and Alpha Pure range of solar modules are recognized as among industry leaders in efficiency, reliability and long guaranteed life,” RIL said in a statement.

“The heterojunction (HJT) technology used by REC helps its modules surpass the performance of other commonly used technologies in the industry,” it added.

Headquartered in Norway REC has its operational headquarters in Singapore and regional hubs in North America, Europe, Australia, and Asia-Pacific.

The 25-year-old company has three manufacturing facilities – two in Norway for making solar grade polysilicon and one in Singapore making PV cells and modules.

Reliance said it will support for REC’s planned expansions including 2-3 GW Cells and Module capacity in Singapore, brand new 2 GW Cells and Module unit in France and another 1 GW Modules plant in the U.S.

In India, plans are to use this technology in its fully integrated,metallic Silicon to PV Panel manufacturing giga factory at Dhirubhai Ambani Green Energy Giga Complex, Jamnagar initially starting with 4 GW per annum capacity and eventually growing to 10 GW per annum.

The acquisition of REC will help Reliance with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia, it said.

Mukesh Ambani, Chairman, RIL, said: “It is in line with our strategy of investing in new and advanced technologies and operating capabilities aimed at achieving Reliance’s goal of enabling 100 GW clean and green energy before the end of this decade.”

“Together with our other recent investments, Reliance is now ready to set up a global scale integrated Photovoltaic Giga factory and make India a manufacturing hub for lowest cost and highest efficiency solar panels. We will continue to invest, build and collaborate with global players to achieve the highest reliability, efficiency and economies to deliver high- quality, reliable power at affordable prices to our customers both in India and markets worldwide,” he said.

Printable version | Oct 11, 2021 2:51:05 AM | https://www.thehindu.com/business/Industry/reliance-new-energy-acquires-rec-solar-holdings-for-771-million/article36926662.ece

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Reliance buys REC Solar for over Rs 5,791 crore

Deccan Herald 10 October, 2021 - 03:55am

Reliance Industries Ltd on Sunday announced acquisition of REC Solar Holdings for an enterprise value of $771 million (Rs 5,791.11 cr) from China National Bluestar (Group) Co Ltd as it seeks to become net carbon zero by 2035.

The purchase of the Norwegian solar panel maker by the conglomerate's Reliance New Energy Solar Ltd (RNESL) follows the June announcement by the parent - operator of the world's biggest refining complex - that it would invest $10.1 billion in clean energy over three years.

Reliance, owned by Asia's richest man, Mukesh Ambani, plans to build solar capacity 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.

The group aims to build four "giga factories" to produce solar cells and modules, energy storage batteries, fuel cells and green hydrogen.

"Together with our other recent investments, Reliance is now ready to set up a global scale integrated Photovoltaic Giga factory and make India a manufacturing hub for lowest cost and highest efficiency solar panels," Ambani said in the statement.

RNESL said in August it would invest $50 million in U.S. energy storage company Ambri Inc as part of a $144 million investment by Reliance Industries, along with billionaire Bill Gates, investment management firm Paulson & Co and others.

Globally, oil majors such as Royal Dutch Shell Plc and BP Plc have also set goals to become net zero-carbon firms by 2050 amid pressure from investors and climate activists.

Solar installations across the world are set this year for their fastest growth in five years, according to data research firm IHS Markit.

Ambani said his firm would continue to invest and collaborate with global players to provide reliable and affordable power to customers in India and overseas markets.

Reliance said it would use REC's technology in its PV Panel making giga factory, with initial annual capacity of 4 GW, eventually rising to 10 GW.

The acquisition would help Reliance grow in key green energy markets globally, including in the United States, Europe, Australia and elsewhere in Asia, it said, adding it would support REC's planned expansions in Singapore, France and the United States. Reliance's green push comes as India raises its renewable energy capacity, currently about 100 GW, to meet about two-fifths of its electricity needs by 2030 under the Paris climate accord.

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