Brookfield Asset Management has joined forces with India’s Reliance Industries (RIL) to explore opportunities for manufacturing renewable energy and decarbonization equipment in Australia.
The Memorandum of Understanding (MoU) signed between the two companies aims to accelerate and de-risk Australia’s energy transition by enabling local production of clean energy equipment, including photovoltaic (PV) modules, long-duration battery storage, and wind energy components.
The partnership between Brookfield and Reliance Industries seeks to facilitate Australia’s journey to a net-zero future by fostering direct capital investment and developing skills, knowledge, and expertise in the renewable energy sector. The companies will evaluate the establishment of advanced operations in Australia to manufacture or assemble equipment used in constructing renewable energy projects, providing equipment to various players in the market, including Origin Energy Markets. Reliance brings strong expertise in solar panel technology and long-duration battery storage and is currently setting up one of the world’s largest integrated renewable energy manufacturing facilities in India.
This MoU is a key initiative undertaken by Brookfield to introduce global manufacturing technology and expertise to Australia. Earlier this year, Brookfield signed a binding agreement with EIG to acquire Origin Energy, and the proposed acquisition is currently undergoing relevant approvals processes. As part of the acquisition plan, Brookfield, along with institutional partners GIC and Temasek, aims to invest between A$20 billion and A$30 billion over the next ten years to accelerate the country’s energy transition.
The MoU with Reliance complements this investment by ensuring a consistent and sufficient supply of clean energy equipment required for developing up to 14 GW of new, large-scale generation and storage capacity in Australia. Independent analysis conducted for Brookfield suggests that establishing onshore sovereign manufacturing capability for the energy transition could create approximately 18,000 direct and indirect jobs, with a positive impact on regions most affected by the transition, such as the Hunter Valley in New South Wales and the La Trobe Valley in Victoria.
Luke Edwards, Brookfield Renewable Head of Australia, expressed optimism about the collaboration, stating that Australia’s abundant raw materials and a strong history of manufacturing create an opportunity to bring advanced offshore manufacturing processes to the country, driving down emissions faster and fostering job creation. The partnership aims to kickstart a new era in local manufacturing to benefit domestic renewables developers and communities across Australia.
Anant Ambani, Director of Reliance New Energy, reaffirmed Reliance’s commitment to creating a global clean energy ecosystem that benefits humanity and the environment. He expressed confidence in exploring green energy opportunities in Australia with Brookfield to accelerate the nation’s transition to a net-zero future and contribute to the global green energy movement.
Brookfield’s track record of long-term capital commitment to the energy transition and its innovative approach to large-scale investments in re-shoring essential and strategic manufacturing processes position the company as a strong supporter of these manufacturing initiatives.