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Business News/ Companies / News/  Reliance Industries to build world's largest carbon fibre plants. Details here

Reliance Industries to build world's largest carbon fibre plants. Details here

Ambani announced that the company will commence ACN production next year and the first phase of carbon fibre in 2025.

The plants will have a capacity of 20,000 MTPA based on Acrylonitrile feedstock. (Reuters)Premium
The plants will have a capacity of 20,000 MTPA based on Acrylonitrile feedstock. (Reuters)

Committing to their vision for new materials, Reliance Industries chairman Mukesh Ambani, in the 45th AGM on Monday, announced to build India's first and one of the world’s largest Carbon Fibre plants at Hazira, Gujarat. The plants will have a capacity of 20,000 MTPA based on Acrylonitrile feedstock. Overall, in the Oil to Chemical segment (O2C), Ambani Ambani announced an investment of 75,000 crore over the next five years to expand capacities in existing and new value chains. These value chains are - Polyester value chain, Vinyl chain, and New Materials.

In the polyester value chain, Ambani announced to build one of the world's largest single-train PTA plant of 3 MMTPA capacity at Dahej.

He said, "We will also invest in a 1 MMTPAPET plant at Dahej. Both PTA and PET will be targeted for completion by 2026. We will also reinvest in Polyester Filament Yarn (PFY) and Polyester Staple Fibre (PSF). Polyester expansion with a capacity of over 1 MMTPA will be completed in phases by 2026."

Meanwhile, in Vinyl chain, Ambani said, "we will more than triple our existing capacity by adding world-scale plants at Dahej and Jamnagar in India, and also in the UAE. We will aim to complete 1.5 MMTPAof feedstock integrated PVC expansion at Dahej and Jamnagar in phases by 2026. 

He further added in Vinyl chain, "We will also add capacities to make EDC and PVC at Ruwais, in the UAE, as part of the Ta'ziz Chemical Zone. The joint venture with ADNOC and ADQ will target to full domestic demand of the region. With these expansions, Reliance will rank among the Top-5 producers of PVC globally."

Further, consistent with its vision for New Materials, Ambani said, "we will build in phases India's first and one of the world's largest Carbon Fibre plants at Hazira with a capacity of 20,000 MTPA, based on Acrylonitrile feedstock. We will commence Acrylonitrile production next year and aim to complete the first phase of the carbon fibre plant in 2025."

The company will further integrate its composites business with Carbon Fibre to produce Carbon Fibre composites. Apart from other applications, Carbon Fibre composites are also used to meet the rapidly growing light-weight requirements of Mobility and Renewable Energy. Thus, Carbon Fibre promises to be a multi-decade growth engine for O2C, Ambani highlighted.

Reliance has commenced its journey to becoming net carbon zero by 2035 with a set of concrete actions.

He said, "We have extensively started consuming biomass as fuel to produce green energy at scale. I am pleased to share that within a span of just one year, we have replaced almost 5% of energy consumption at our Dahej and Hazira sites by green power and green steam. Within one year, the renewable energy consumption at Reliance jumped by 352%. I feel confident that such initiatives, coupled with transition to renewable power for our O2C assets, will accelerate our journey to become net-carbon zero."

During Q1FY23, RIL's O2C business delivered its best-ever quarterly performance with all-time-high Revenue and EBITDA. The segment revenues for 1Q FY23 increased by 56.7% yoy to 161,715 crore primarily on account of higher crude oil and product prices. Benchmark Brent crude average price was up 65% yoy to $113.9/bbl. Segment EBITDA for 1Q FY23 improved by 62.6% yoy to 19,888 crore primarily on account of sharp rise in transportation fuel cracks and better volumes. The company maintained high utilization levels across sites and units with total throughput (including refinery) of 19.7 MMT, marginally higher than 1Q FY22.

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Published: 29 Aug 2022, 03:31 PM IST
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