Reliance’s Clean Energy Pivot: Building the World’s Largest Green Energy Hub in India
Reliance Industries is committing more than $75 billion to build the world’s largest integrated clean energy hub in Gujarat. With solar farms bigger than Singapore and ambitions to produce 3 million tonnes of green hydrogen annually, the company is making one of the most significant corporate pivots in Asia. But can an oil titan successfully reinvent itself for a low-carbon world?
At a Glance: Why This Matters
Reliance is investing $75 billion into clean energy, marking one of the largest private commitments to renewables in Asia.
India has pledged 500 GW of renewable capacity by 2030 and net zero by 2070; Reliance is positioning itself as a key driver of that transition.
Success could make India a major exporter of green hydrogen and clean fuels, reshaping global energy supply chains.
Challenges remain: financing scale, technology maturity, and execution speed will determine whether the vision is realized.
The Grand Blueprint
At its 48th Annual General Meeting, Reliance outlined its most transformative vision yet:
Solar PV gigafactory: 20 GW annual capacity, already producing its first 200 MW of high-efficiency modules.
Battery gigafactory: Starting at 40 GWh by 2026, scaling to 100 GWh.
Electrolyzer gigafactory: 3 GW annual capacity by 2026 to power green hydrogen production.
Green hydrogen: Target of 3 million tonnes annually by 2032, aiming for costs below $1/kg—a breakthrough if achieved.
Solar farm in Kutch: A 550,000-acre project, nearly three times the size of Singapore, which could supply ~10% of India’s power needs within a decade.
Biofuels: 500 compressed biogas plants by 2030, supporting rural incomes through “agrivoltaics” that combine solar and agriculture.
This project isn’t just about renewables; it’s about building an end-to-end clean energy ecosystem on one site.
The Dual-Track Strategy
Reliance is not moving away from its profitable oil-to-chemicals business overnight. Instead, it is pursuing a dual-track strategy: expanding petrochemicals while steadily scaling clean energy until both stand as strong, complementary pillars.
Importantly, Reliance is de-risking its early green hydrogen production by using it internally to decarbonize its Jamnagar refinery and power new data centers (such as a Google cloud region built on clean power). This captive demand provides stability in a volatile, emerging hydrogen market—an edge over rivals dependent solely on external buyers.
The Policy Backdrop
Reliance’s timing is closely tied to India’s energy roadmap. The National Green Hydrogen Mission targets 5 million tonnes of domestic production by 2030. Reliance’s 3 Mtpa ambition by 2032 represents more than half of that target.
The company also benefits from Production-Linked Incentives (PLI) for solar and advanced batteries, which aim to reduce import reliance and promote local manufacturing. Gujarat’s proactive industrial policies and port access further strengthen the case.
The alignment is clear: India provides policy certainty, Reliance brings corporate scale. Together, they create momentum for the clean energy transition.
India and Saudi Arabia: Two Models for Green Hydrogen
India’s green hydrogen ambitions cannot be separated from the global race, where Saudi Arabia’s NEOM project is the flagship competitor. A closer look at both highlights how differently the two regions are approaching the same challenge.
NEOM (Saudi Arabia):
$8.4B sovereign-backed project powered by 4 GW of renewables.
Produces 600 tonnes of hydrogen daily → 1.2M tonnes of ammonia annually.
Entire output tied to Air Products under a 30-year deal.
Export-first, state-funded, and reliant on long-term global demand.
Reliance (India):
Privately led, launched in 2021 with a $10B plan.
Builds on existing refining infrastructure and proven execution capacity.
Vision spans the full chain: manufacturing → generation → distribution.
Anchored on captive demand (refineries, data centers, Google cloud hub).
Domestic-first approach, with phased expansion into exports later.
Key Difference: NEOM is an export-driven, state-backed project with a single offtaker. Reliance is pursuing a more pragmatic, demand-anchored path, aiming for resilience and scalability by meeting India’s domestic needs first before tapping global markets.
Key Hurdles Ahead
Capital intensity: $75B+ in long-term investment requires sustained financing. Reliance has a strong track record in attracting FDI (e.g., Jio’s $20B raise in 2020), but delivery pace will be critical.
Technology costs: Current hydrogen costs in India are ~$5–6/kg. Achieving <$1/kg is ambitious and depends on rapid declines in renewables and electrolyzer costs.
Execution risks: Mega-projects in India face land, permitting, and grid hurdles. Large solar farms may also face community concerns.
Competition: Australia and the Middle East also have abundant renewables and strong government support. India must compete on both cost and credibility.
What It Means for India and Beyond
Corporate Transformation: Reliance illustrates how fossil fuel giants can pivot—while maintaining legacy strengths.
National Alignment: Reliance is emerging as a cornerstone in India’s 500 GW by 2030 and net-zero by 2070 roadmap.
Global Competition: India is positioning itself to challenge Saudi Arabia, Australia, and China in the clean fuels race.
Supply Chain Resilience: By localizing solar, battery, and electrolyzer production, India reduces reliance on imports.
Looking Ahead: Can the Bet Pay Off?
Reliance’s clean energy hub is both ambitious and pragmatic—ambitious in scale, pragmatic in its staged, demand-anchored approach. Its success could redefine India’s role in the global energy transition, shifting it from a fossil fuel importer to a clean energy exporter.
For now, the project remains a high-stakes strategic bet. Delivery, cost reductions, and policy stability will decide whether it becomes a global model—or a lesson in the complexities of large-scale transformation.
