Shares of Reliance Industries (RIL) climbed up to 2% in intraday trade on Wednesday, in an otherwise muted broader market. The sentiment was lifted after billionaire Mukesh Ambani-led oil-to-telecom conglomerate signed a licensing agreement with Nel Hydrogen Electrolyser AS for manufacturing electrolysers for captive purposes globally.
Snapping two sessions losing streak, RIL shares opened a tad higher at ₹2,872.90 against the previous closing price of ₹2,871.30 on the BSE. Extending opening gains, the share price of the country’s most valued stock rose as much as 2% to ₹2,930.75, while the market capitalisation increased to ₹19.71 lakh crore. On the other hand, BSE Sensex was trading 141.34 points, or 0.19%, higher at 74,095, and the NSE Nifty was at 22,534, up by 5.25 points, or 0.02%.
At the current level, Reliance shares trade close to its 52-week high of ₹3,024.80 touched on March 4, 2024, while it slipped to its 52-week low of ₹2,221.05 on October 26, 2023. In the last one year, RIL shares have risen 19%, while it rallied over 22% in the past six months. In the last one month, the counter has seen a correction of over 1%, while it gained 2.5% in a week.
In a post-market release on May 21, RIL said that Norway-based Nel Hydrogen Electrolyser AS, a fully owned subsidiary of Nel ASA, has entered into a technology licensing agreement with the company. As part of the deal, RIL will get exclusive license for Nel’s alkaline electrolysers in India, allowing the conglomerate to manufacture Nel’s alkaline electrolysers for captive purposes globally.
“The signing of this agreement is a great milestone in Nel’s history. Reliance is an impressive company with enormous ambitions as a global producer of renewable hydrogen, and I am proud that they have selected Nel as their technology partner,” says Nel’s President and CEO, Hakon Volldal.
As part of the agreement, Nel will get a revenue stream from a rapidly growing market which the company could not have accessed on its own, adds Volldal.
RIL is building a multi-gigawatt (GW) fully integrated end-to-end new energy value chain, from photon to green molecules, paving the way for abundant and affordable access to sustainable energy for everyone, as per the vision set by RIL’s chairman and managing director, Mukesh Ambani. Green hydrogen is a critical element of the new energy value chain – and the partnership between RIL and Nel in relation to alkaline electrolysers is an important milestone towards the sustainable energy future.
The deal will help Reliance get access to Nel’s technology platform for manufacturing electrolysers. “RIL has successfully built multiple businesses of truly global scale. This partnership of Nel’s robust technology platform with RIL’s execution prowess – will further add to the success story for both partners.”
As per the release, both partners will also collaborate on future performance improvements and cost optimisation through research and development (R&D), value engineering, standardisation and modularisation to improve the competitiveness of the alkaline technology platform. According to the agreement, Nel can procure equipment from Reliance for its own projects. Nel will continue to serve the Indian market with technology platforms that are not covered by the agreement, it says.
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