Reliance Industries, owned by industrialist Mukesh Ambani, has the potential to earn $10-15 billion from its new energy business, which ranges from solar to hydrogen, by 2030, according to a report by Sanford C. Bernstein. However, the company will need to expand its limited expertise in technology through new acquisitions or partnerships. This new pillar of development, which requires an investment of $2 trillion in clean energy (solar, battery, electrolyser, and fuel cell) by 2050 in India, is a major step for Reliance. India is targeting 280 GW of solar capacity and 5 million tons of green hydrogen production by 2030.
The report also states that “our estimate is that the clean energy total available market (TAM) could increase from the current $10 billion to $30 billion by 2030.” The brokerage firm predicts that the number of electric vehicles in the passenger and commercial vehicle category will reach 5% and 21%, respectively.
Reliance, which operates in sectors ranging from oil to telecommunications, has announced its entry into the hydrogen market along with solar power generation. The company plans to install 100 GW of solar capacity by 2030, which is 35% of the country’s targeted capacity of 280 GW.
Bernstein stated, “We expect Reliance to capture 60% of the solar market, 30% of the battery market, and 20% of the hydrogen market by 2030.” The report estimates that Reliance can earn revenue of around $10-15 billion from its new energy business by 2030, accounting for approximately 40% of the TAM.
According to IIFL Securities, “the company’s shares are trading at their highest levels in five months. The charts show higher top higher bottom formations, and the technical indicators are positive. Reliance is planning to expand its telecommunications and oil businesses, which could lead to a surge in its stock prices.” The brokerage firm has given a ‘buy’ rating to the stock with a target price of Rs. 2670.
In conclusion, Reliance Industries’ entry into the clean energy sector is a significant development, and the company’s potential earnings from this business are substantial. The move also aligns with India’s goal of reducing its carbon footprint and adopting renewable energy.
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