RIL To Restructure And Repurpose Gasification Assets

Mumbai, Nov 25, : , Reliance Industries Ltd’s Board decided Wednesday to implement a Scheme of Arrangement’ in order to transfer the Gasification’ undertaking to a wholly-owned subsidiary.(WOS).
RIL aims to have a portfolio that is fully re-cyclable and sustainable, as well as net carbon zero.The company stated in a statement that it will achieve this goal by switching to high-value materials and chemicals with renewable energy as its source of energy.

 Ril To Restructure And Repurpose Gasification Assets-TeluguStop.com

“As RIL gradually transitions to renewables for its primary source of electricity, more syngas’ will be available for upgradation into high-value chemicals such as ‘C1 chemicals’ and hydrogen.”

The company also stated that the carbon dioxide released during the production of ‘Hydrogen is highly concentrated and easy-to-capture, which significantly reduces the cost of carbon capture.

“Overall, these steps will significantly reduce the carbon footprint of Jamnagar complex.”

India is a market that is experiencing high growth and will continue to experience a shortage of high-value chemicals in the future.”

RIL says that repurposing the “Gasification” Assets will allow you to use “syngas” as a reliable source for feedstock to produce these chemicals and meet growing domestic demand.This will make it an attractive business opportunity.

“RIL will also be well-positioned to be the first to establish a hydrogen ecosystem as the hydrogen Economy expands.”

Additionally, Syngas applications can be optionally submitted.This will make it more likely that the nature of risk associated with gasifier Assets and the returns they provide will be different from other businesses within the company.

“This unique business profile allows us to attract different investors and strategic partners for gasification Assets and new material and chemicals projects.”

“The Board approved a Scheme to transfer ‘Gasification Undertaking’ as a going concern on slump sales basis for a lumpsum consideration equal to the carrying price as of the ‘Appointed Day’.”

The scheme will also allow RIL to “evaluate unlocking the value syngas with a collaborative approach that involves – induction investor(s) in gasifier subsidiary and- capturing value for RIL upgradation through partnerships in various chemical streams”.

The company stated that the scheme’s date would be March 31, 2022, or “any other date that may be determined by Board”.

The scheme will also need approval from Stock Exchanges, Creditors and Shareholders, NCLT, and other regulatory authorities.

Jamnagar’s ‘Gasification Project’ was established with the goal of producing syngas to meet energy requirements.Refinery off-gases that were previously used as fuel were Repurposed as feedstock for the “Refinery Off Gas Cracker” (ROGC).

This allows for production of ‘olefins’ at competitive capital and operating expenses.

Syngas as a fuel also ensures reliability and helps to reduce volatility in energy costs.

The ‘Syngas” is also used to make Hydrogen for use in the Jamnagar refinery.

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