Brookfield Asset Management took a significant step towards establishing a net-zero future by signing a Memorandum of Understanding (MoU) with Reliance Industries on August 1, 2023. The primary goal of this collaboration is to accelerate and de-risk Australia’s energy transition through the local production of clean energy equipment. Brookfield plans local production of PV modules, long-duration battery storage, and components for wind energy.
In a notable development in March 2023, Brookfield entered a binding agreement with EIG to acquire Origin Energy. In line with their commitment to Australia's energy transition, Brookfield, together with its institutional partners and global institutional investors GIC and Temasek, has willingly pledged investments between A$20 billion and A$30 billion over the next decade. The MoU signed with Reliance plays a pivotal role in this initiative, as it aims to introduce global manufacturing technology and expertise to Australia. Both companies are in mutual agreement to explore avenues for direct capital investment and the development of skills, knowledge, and expertise within Australia's renewable energy sector, thereby facilitating a smooth transition to a net-zero future.
Reliance is currently in the process of setting up one of the world’s largest integrated renewable energy manufacturing facilities in India. Mr. Anant Ambani, Director of Reliance New Energy Limited, said, "At Reliance, we are firmly committed to the mission of creating a global clean energy ecosystem that is both beneficial to humanity and compatible with nature. Towards this end, Reliance is pursuing investment opportunities in India and globally with great enthusiasm and passion.”
Brookfield's expertise in solar panels and long-duration battery storage positions them well to assist and evaluate the establishment of advanced operations. To achieve the goal of developing up to 14 GW of new, large-scale generation and storage capacity in Australia, a steady and sufficient supply of clean energy equipment is essential. The MoU with Reliance will play a crucial role in achieving this objective.
Mr Luke Edwards, the Head of Australia’s Brookfield Renewable, stated, “The energy transition creates an opportunity to bring advanced manufacturing processes created offshore to Australia, which would secure the supply of critical equipment for the transition to help drive down Australia’s emissions faster and contribute significantly to job creation.” Brookfield's independent analysis suggests that these projects have the potential to create over 18,000 direct and indirect jobs, making the Hunter Valley in New South Wales and the La Trobe Valley in Victoria prominent regions for welcoming new job opportunities as they will be most impacted by the transition.
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