Reliance ties up with Brookfield for green energy push in Australia

Reliance Industries Ltd (RIL) has tied up with Brookfield Asset Management to explore the manufacture of renewable energy and decarbonization equipment, including carbon capture and storage systems, in Australia. 

The partnership aims to fast-track and ensure the security of Australia’s transition to clean energy, RIL said in an exchange filing.

Both companies will explore funding avenues and the feasibility of setting up operations to produce or assemble equipment for renewable energy projects.

RIL is currently setting up one of the world’s largest integrated renewable energy manufacturing facilities in India.

“Reliance and Brookfield will explore avenues in green energy in Australia, accelerating that nation’s transition to a Net Zero future and providing a fillip to the global green energy movement,” Anant Ambani, director, Reliance New Energy Ltd, said in a statement. 

The deal is part of Brookfield’s strategy to bring global manufacturing technology and expertise to Australia. Earlier this year, it signed an agreement with the EIG consortium to acquire Origin Energy, Australia’s second-largest power producer and energy retailer. The deal is awaiting regulatory approval.

Brookfield, along with institutional partners and global investors GIC and Temasek, plans to invest between Australian $20-30 billion over the next decade to expedite its energy transition.

“Australia has a proud history of manufacturing and an abundance of raw materials, but the industry is not currently cost competitive. The energy transition creates an opportunity to bring advanced manufacturing processes created offshore to Australia, which would secure the supply of critical equipment for the transition to help drive down Australia’s emissions faster and contribute significantly to job creation,” Luke Edwards, Brookfield Renewable head of Australia said in the statement.

The deal with Reliance is expected to help ensure a steady and adequate supply of clean energy equipment to develop up to 14GW of new, large-scale generation and storage capacity in Australia, the release said, adding that setting up local manufacturing capabilities for the energy transition could potentially create about 18,000 direct and indirect jobs in Hunter Valley in New South Wales and the La Trobe Valley in Victoria.