The world’s biggest oil company, Saudi Aramco is reportedly planning to invest in the clean energy unit of Indian multinational conglomerate company, Reliance Industries Ltd (RIL).
According to media reports, Saudi Aramco, along with a clutch of financial investors, has shown initial interest in investing in Reliance New Energy Solar Ltd.
“Reliance plans to get investors in its renewable energy business. While many investors are excited about this opportunity, Aramco is also said to be evaluating the same,” as per the sources.
Last month, both firms announced the scrapping of a $15 billion stake purchase plan in Reliance’s oil-to-chemicals business. The Saudi company’s plan to buy a 20 percent stake was called off on valuation differences and the need to achieve net-zero emission targets. Consequently, Reliance Industries withdrew an application in a company court to separate the business.
“Reliance and Aramco have a longstanding relationship and will continue to look for investment opportunities in India. India offers tremendous growth opportunities over the long term and Aramco continues to evaluate new and existing business opportunities with our potential partners. Updates on any business milestones will be made as and when appropriate,” Aramco said in a statement.
According to the US-based investment bank, Morgan Stanley, RIL’s plans would transform it into the largest renewable infrastructure producer with the potential to become an alternative technology supplier to the world.
Over the past months, RIL has inked four clean energy deals and a partnership for its renewable energy business. It acquired REC Solar Holdings from China National Bluestar Group. It also purchased a 40 percent stake in Indian firm Sterling and Wilson Solar.
Additionally, RIL has invested in Germany’s NexWafe’s technology to make competitively priced photovoltaics (PV) panels and partnered with the American energy storage company, Ambri for storage solutions.
