RIL invests in Germany's NexWafe; inks pact with Denmark's Stiesdal

Reliance New Energy Solar (RNESL), a wholly owned subsidiary of Reliance Industries (RIL), has invested $29 million as a strategic lead investor in Germany-based NexWafe GmbH's (NexWafe) Series C financing round.

RNESL has entered into an agreement with NexWafe GmbH (NexWafe) for acquiring 86,887 series C preferred shares of face value of EUR 1 each of NexWafe at a price of EUR 287.73 per share, aggregating EUR 25 million.

RNESL will also be issued 36,201 warrants which are exercisable for a consideration of EUR 1 per warrant subject to achievement of agreed milestones. The transaction is proposed to be completed by end of October 2021.

NexWafe is developing and producing monocrystalline silicon wafers grown directly from inexpensive raw materials, going directly from the gas phase to finished wafers, obviating the need for costly and energy intensive intermediate steps such as polysilicon production and ingot pulling on which traditional wafer manufacturing relies.

NexWafe's unique patented technology is expected to cut wafer production costs, making solar photovoltaics the lowest-cost form of renewable energy available.

NexWafe is a limited liability company incorporated in Germany on 18 May 2015. Its turnover for FY 2020, FY 2019 and FY 2018 was EUR 141,899, EUR 157,163 and EUR 132,519, respectively.

The investment by RNESL will accelerate product and technology development for NexWafe, including completion of the commercial development of NexWafe's solar photovoltaics products on prototype lines in Freiburg.

Further, RNESL and NexWafe have also entered into an India strategic partnership agreement providing for joint technology development and commercialization, at scale, of high-efficiency monocrystalline "green solar wafers". Under the tieup, RNESL will secure access to NexWafe's proprietary technology and plans to build large-scale wafer manufacturing facilities in India using the NexWafe processes and technology.

Separately, RIL informed on Tuesday that RNESL and Denmark-based Stiesdal have signed a cooperation agreement for technology development, and manufacturing of Stiesdal's hydrogen electrolyzers in India. Stiesdal is engaged in developing and commercializing several technologies to counter climate crisis.

The new technology for hydrogen electrolyzers has the potential to deliver significant cost reduction compared to currently available technologies thereby paving the way for rapid decarbonization and commercialization of affordable green hydrogen-a key enabler in achieving India's green energy transition.

As part of this agreement RNESL and Stiesdal have also agreed to extend their collaboration to development and implementation of other climate change technologies, including offshore wind energy, next generation fuel cells for conversion of hydrogen to electricity for mobile and static electricity generation, long duration energy storageand production of carbon negative fuels.

RIL is the largest private sector corporation in India. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services. The company reported a 7.3% fall in consolidated net profit to Rs 12,273 crore on a 58.6% rise in net sales to Rs 1,39,949 crore in Q1 FY22 over Q1 FY21.

Shares of RIL were up 0.43% at Rs 2680 on BSE. The stock hit a high of Rs 2688 and a low of Rs 2676.25 in initial deals.

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