Reorganization of Reliance Industries, reconstruction of Jamnagar gasification unit


Mumbai: The board of Reliance Industries Limited (RIL) on Wednesday decided to implement the ‘system of planning’ to transfer the ‘gasification’ undertaking to a wholly owned subsidiary (WOS).

“RIL aims to build a portfolio that is completely recyclable, sustainable and net carbon zero. It combines high value materials and chemicals with renewable energy to meet its energy requirements,” the company said in a statement. will be obtained by converting it as a source.” ,

“As RIL progressively transitions to renewable energy as its primary source of energy, more ‘syngas’ will become available to upgrade to high value chemicals, including ‘C1 chemicals and hydrogen’.”

In addition, the company said that the carbon dioxide released during the process of producing ‘hydrogen’ is highly concentrated and easy to capture, which significantly reduces the cost of carbon capture.

“Overall, these steps will help reduce the carbon footprint of the Jamnagar campus rapidly.”

“India is a high growth market and the shortage of these high value chemicals is expected to continue in the near future.”

According to RIL, restructuring of ‘gasification’ assets will help in production of these chemicals and use of ‘syngas’ as a reliable source of feedstock to meet the growing domestic demand, resulting in a lucrative business opportunity.

“Going forward, as the hydrogen economy expands, RIL will be well positioned as a first mover to establish a hydrogen ecosystem.”

Furthermore, with the optionality in applications for ‘Syngas’, the nature of the risks and returns associated with the gasifier assets is likely to be different from those of the Company’s other businesses.

“This distinctive business profile provides an opportunity to potentially attract a diverse pool of investors and strategic partners for gasification assets and new materials and chemicals projects.”

“The Board has accordingly approved a scheme for transfer of ‘Gasification Undertaking’ on the basis of slump sale as a lump sum consideration equal to the carrying value on the ‘appointed date’.”

Additionally, the plan will enable RIL “with a collaborative and asset-light approach, to evaluate the unlocking value of Syngas – involving investor(s) in the gasifier subsidiary and – through partnerships across various chemical streams”. Capturing the value of upgradation from RIL to RIL”.

The company said the due date of the scheme would be March 31, 2022 or “such other date as may be determined by the board”.

In addition, the scheme would require the approval of stock exchanges, creditors, shareholders, NCLT and other regulatory authorities.

The ‘Gasification’ project at Jamnagar was set up with the objective of producing syngas to meet the energy requirements, as the refinery off-gas, which earlier served as fuel, was called ‘Refinery of Gas Cracker’ (ROGC). ) was converted into feedstock.

This enables the production of ‘olefins’ at competitive capital and operating costs.

In addition, ‘syngas’ as a fuel ensures reliability of supply and helps reduce volatility in energy costs.

‘Syngas’ is also used to produce hydrogen for consumption at the Jamnagar refinery.