Reliance Industries to restructure and repurpose gasification assets

The Board of Reliance Industries Limited (RIL) has decided to implement a Scheme of Arrangement to transfer gasification undertaking into a wholly-owned subsidiary. RIL aims to establish a portfolio that is totally recyclable, long-lasting, and carbon-neutral. This will be accomplished by switching to high-value materials and chemicals and relying on renewable energy to generate the energy.

As RIL progressively transitions to renewables as its primary source of energy, more syngas will become available for upgradation to high value chemicals including C1 chemicals and hydrogen. Further, carbon di-oxide released during the process of producing hydrogen is highly concentrated and easy to capture, substantially reducing the cost of carbon capture. Overall, these steps will help sharply reduce carbon footprint of Jamnagar complex

The gasification project in Jamnagar was designed with the purpose of producing syngas to meet energy needs by repurposing refinery off-gases that were formerly used as fuel into feedstock for the refinery off gas cracker. This is expected to make it possible to produce olefins at low capital and operating expenses. Syngas as a fuel ensures supply reliability and helps to reduce energy price volatility. In the Jamnagar refinery, syngas is also utilised to produce hydrogen for consumption.

Furthermore, because of the flexibility in syngas applications, the risk and returns associated with the gasifier assets will likely be distinct from those involved with the company’s other operations. This diverse business profile also expected to allow the gasification assets and new materials and chemicals projects to possibly attract a different pool of investors and strategic partners.

In August 2021, Reliance New Energy Solar Limited,  a wholly owned subsidiary of Reliance Industries, along with other investors including Paulson & Co. Inc. and Bill Gates announced a $144 million investment in AmbriInc, an energy storage company based in Massachusetts, USA. RNESL would invest $50 million in Ambri to purchase 42.3 million preferred stock shares projects.

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