Reliance Industries’ technology partnership with Norway’s Nel ASA will help accelerate its new energy investments, including in the production of green hydrogen that will aid billionaire Mukesh Ambani’s pivot towards green energy.

Reliance on May 21 entered into a technology licensing agreement that provides the company with an exclusive licence for Nel’s alkaline electrolysers in India and also allows it to manufacture the Norwegian company’s alkaline electrolysers for captive purposes globally.

“We see this as a win-win for RIL and Nel as it supports RIL’s ambition to accelerate its new energy ambitions, build an integrated energy vertical (new energy powering existing energy investments) and decarbonise the portfolio,” brokerage Morgan Stanley said in a note.

For Nel, it provides a revenue stream that it could not access on a standalone basis in India and may provide a new revenue stream that will not solely depend on the company’s ability to execute on securing new large electrolyser orders. Nel ASA has 10-15 per cent global market share in electrolysers with 350MW and 400MW deliveries in 2023-2024.

According to the agreement, Nel can procure equipment from Reliance for its projects. Nel will continue to serve the Indian market with technology platforms that are not covered by the agreement.

“Execution on new energy plans is key to the next leg of value creation this decade for RIL,” it added.

The agreement with Nel Hydrogen Electrolyser AS “provides RIL with an exclusive licence for Nel’s alkaline electrolysers in India and also allows RIL to manufacture Nel’s alkaline electrolysers for captive purposes globally”, the Norwegian firm had said in a statement on May 21.

PTI