Investment management company Brookfield Asset Management said it has signed an MoU with Mukesh Ambani's Reliance Industries with the aim of exploring opportunities to manufacture renewable energy and decarbonization equipment in Australia.
According to the company's statement, The MoU aims to accelerate and de-risk Australia’s energy transition by enabling it to locally produce clean energy equipment such as PV modules, long-duration battery storage and components for wind energy.
As part of the partnership, Brookfield will work with Reliance to explore avenues of direct capital investment and development of skills, knowledge and expertise in the renewable energy sector of Australia to facilitate the nation’s transition to a net zero future.
"Reliance and Brookfield will evaluate the establishment of advanced operations in Australia to make/or assemble equipment used in the construction of renewable energy projects supplying equipment to all players in the market, including Origin Energy Markets. Reliance has strong expertise in solar panel technology and long-duration battery storage technology. It is currently in the process of setting up one of the world’s largest integrated renewable energy manufacturing facilities in India," The company said in a release.
In March this year, it signed a binding agreement with EIG to acquire Origin Energy. The proposed acquisition is currently going through the relevant approvals processes. As part of its proposed acquisition of the Origin Energy Markets division, Brookfield, along with its institutional partners and global institutional investors GIC and Temasek, have set out a plan to invest between A$20 billion and A$30 billion over the next ten years to accelerate its energy transition.
The MoU with Reliance intends to support this investment to ensure a consistent and adequate supply of the clean energy equipment required to develop up to 14 GW of new, large-scale generation and storage capacity in Australia. The company claimed that the project has the potential to create approximately 18,000 direct and indirect jobs.