Age Of Fossil Fuels Will Not Continue Much Longer, Says Mukesh Ambani

Reliance seeks shareholders' approval to appoint Mukesh Ambani as head for another 5 years at nil salary

Mukesh Ambani will address shareholders at Reliance Industries' 46th annual general meeting (AGM) on August 28.

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The annual report released by Reliance Industries (RIL) on Sunday highlighted the conglomerate’s focus on new energy solutions. RIL Chairman and Managing Director Mukesh Ambani in his speech said that the age of fossil fuels will not continue much longer, news report Bloomberg stated. According to the report, RIL has sought shareholders’ nod to give Ambani another five-year term as MD till 2029 at nil salary. The recently demerged Jio Financial Services, which “will leverage the prowess of digital and retail businesses”, was expected to be listed soon.

Jio has received a $2.2 billion fund support from Swedish Export Credit Agency (EKN) to finance equipment for the 5G rollout, according to the report. The company has largely procured telecom gears from Swedish firm Ericsson and Finnish company Nokia to deploy its 5G network. Ambani said the company’s initiatives in the solar value chain and green hydrogen were progressing well.

“The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer,” Ambani was quoted in the firm’s latest annual report for FY23. 

The oil to chemicals (O2C) and oil and gas segments together contributed more than half of the company's total Ebitda in FY23. Ebitda refers to earnings before interest, taxation, depreciation, and amortization. He said, “Our O2C business is transforming. We are switching to renewable sources of energy and newer energy technologies, while promoting the concept of a circular economy, especially for our petrochemical products. Sustainable business techniques are rapidly gaining momentum.”

Ambani said the company was making significant strides in establishing a world-class solar energy value chain and progressing on building a green hydrogen ecosystem. “Our goal is to provide affordable green hydrogen as a viable alternative to traditional fuels," he said.

The report outlined that RIL is in the advanced stages of designing 50 TPD B2H demo plants to produce green hydrogen based on patented technology, offering the lowest operating costs for green hydrogen production. RIL, in its annual report note, noted that after proving cost and performance targets, the company aims to progressively commence the transition from Grey to Green Hydrogen by 2025.

Ambani will address shareholders at the company’s 46th annual general meeting (AGM) on August 28. During the AGM, the company will also seek a re-appointment for Ambani as MD for another term of five years (starting from April 2024), as the billionaire will turn 70 in April 2027.