Brookfield, RIL bet on renewables in Australia

Mumbai: Brookfield Asset Management has entered into an agreement with Reliance Industries (RIL) to seize the emerging opportunities in Australia’s renewable energy space, following its acquisition of Origin Energy in March.

The American asset manager is planning a $20-30 billion investment over the next 10 years to accelerate Australia’s energy transition.

On Tuesday, the companies said they will jointly explore plans to manufacture renewable energy and decarbonization equipment in Australia. “We are committed to the mission of creating a global clean energy ecosystem that is beneficial to humanity and compatible with nature,” said Anant Ambani, director, Reliance New Energy Ltd.

The JV is part of RIL’s strategy to get a foothold in Australia’s fast-growing renewable and green energy space. RIL is pursuing opportunities both in India and globally with great “enthusiasm and passion”, said Anant Ambani.

RIL is investing $72 billion ( ₹5.95 trillion) in green energy and other projects in Gujarat. It will also set up a 10GW solar project in Andhra Pradesh.

Last August, RIL’s billionaire promoter and Asia’s richest man Mukesh Ambani said green energy will be the firm’s crown jewel in seven years.

“The energy transition creates an opportunity to bring advanced manufacturing processes created offshore to Australia,” Luke Edwards, Brookfield Renewable Head of Australia, said.

RIL and Brookfield will explore opportunities for direct capital investment and skill development in the renewable energy sector of the world’s smallest continent.

An independent analysis undertaken for Brookfield indicates that the establishment of onshore sovereign manufacturing capability for the energy transition has the potential to create approximately 18,000 direct and indirect jobs, many in regions most impacted by the transition such as the Hunter Valley in New South Wales and the La Trobe Valley in Victoria.

“The agreement aims to both accelerate and de-risk Australia’s energy transition” by enabling the country locally produce clean energy equipment such as PV modules, long duration battery storage, and components for wind energy.

Brookfield has been a major investor in renewable energy with assets worth over $100 billion in renewable energy projects around the world.

“We want to help kickstart a new era in local manufacturing that will benefit domestic renewables developers, including Origin Energy Markets, and many communities around Australia. We are establishing these types of global partnerships in manufacturing now to allow us to get started as quickly as possible given the ever-reducing timeline for Australia to reach its first emissions-reductions targets in 2030,” added Luke Edwards.