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Reliance New Energy Solar acquires 100% stake in Faradion Limited

The announcement is in line with billionaire Mukesh Ambani’s ambitious plans of investing Rs 75,000 crore over the next three years to build a new clean energy business aimed at RIL’s commitment to be net carbon neutral by 2035

December 31, 2021 / 10:22 AM IST
Reliance Industries Ltd (File image)

Reliance Industries Ltd (File image)

Reliance Industries’ clean energy arm, Reliance New Energy Solar Limited (RNESL), has signed definitive agreements to acquire 100% stake in Faradion Limited for 100 million pounds (over 10 billion rupees), the Indian conglomerate said on December 31.

"Reliance New Energy Solar Limited (RNESL), a wholly owned subsidiary of the Company, has entered into an agreement with Faradion Limited (Faradion) and its shareholders for acquiring 100% of the equity shares of Faradion through secondary transactions for a total value of GBP 94.42Mn based on an enterprise value of GBP 100Mn..." RIL said in the stock exchange filing.

The RIL subsidiary will acquire 88.92% of the equity shares of Faradion for an aggregate consideration of 83.97 million ( INR 8.43 million) at closing, which is expected in early January 2022, according to the regulatory filing. The remaining 11.08% of the equity shares of Faradion will be acquired within 3 years from closing for an aggregate consideration of up to 10.45 million pounds (INR 1.04 billion), it added.

Reliance New Energy Solar has also agreed to subscribe to new equity shares of Faradion for an aggregate consideration of 31.59 million pounds (INR 3.17 billion), of which 25 million pounds (INR 2.5 billion) is as growth capital for accelerating commercial roll out and the balance for repayment of debt and other fees.

The announcement is in line with billionaire Mukesh Ambani’s ambitious plans of investing Rs 75,000 crore over the next three years to build a new clean energy business aimed at RIL’s commitment to be net carbon neutral by 2035. The plan entails three parts—a Rs 60,000 core investment in four giga factories which will manufacture and fully integrate all the critical components for the business; another Rs 15,000 crore investment in building the developing the value chain, partnerships and future technologies.

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Reliance will use Faradion’s state-of-the-art technology at its proposed fully integrated energy storage giga-factory as part of the Dhirubhai Ambani Green Energy Giga Complex project at Jamnagar, India.

“This will further strengthen and build upon our ambition to create one of the most advanced and integrated new energy ecosystem and put India at the forefront of leading battery technologies. The sodium-ion technology developed by Faradion provides a globally leading energy storage and battery solution which is safe, sustainable, provides high energy density and is significantly cost competitive. In addition, it has wide use applications from mobility to grid scale storage and back-up power,” RIL’s Chairman Ambani said in a statement.

Faradion, which is based out of Sheffield and Oxford, has patented sodium-ion battery technology and has a competitive, strategic, wide-reaching and extensive IP portfolio covering several aspects of sodium-ion technology.

RIL said that the technology is sustainable, low cost, and scalable, has high density at par with lithium-ion phosphate and has patented zero-volt safe transport and storage.

“Most importantly, it utilizes sodium, which will secure India’s energy storage requirements for its large renewable energy and fast-growing EV charging market. We will work with Faradion management and accelerate its plans to commercialise the technology through building integrated and end-to-end giga scale manufacturing in India,” Ambani said.

He added that this technology will help the company enable, accelerate, and secure large scale energy storage requirements for the company’s electric vehicle partners.

In October, Reliance New Energy Solar announced four deals in the clean energy space, as a part of its strategy to grow the portfolio through partnerships. The company announced investment in German “green solar wafers” technology company NexWafe GmbH, signed another pact with Danish company Stiesdal A/S for hydrogen electrolyser, acquired 100% stake in solar panel manufacturer REC Solar Holdings AS from China National Bluestar (Group) Co, and acquired 40% stake in Sterling & Wilson Power.

Prior to this, RIL made its first strategic move in the renewable energy sector with an investment of $50 million in US-based energy storage company Ambri Inc.

At 9:30am, shares of RIL traded 0.7 percent higher at Rs 2372.95 apiece on the BSE, while the benchmark Sensex was up 376.78 points or 0.65 percent at 58,171.10.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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first published: Dec 31, 2021 08:37 am
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