New Delhi: Thailand's PTT group-backed Avaada plans to invest about ₹20,000 crore each in a green ammonia plant in Odisha and a green methanol facility in Maharashtra, as it expands into low-carbon fuels. The group plans a cumulative investment of around ₹1 trillion over the next three to four years, founder and chairman Vineet Mittal said in an interview.
"Avaada is setting up two projects, one in Dighi, Maharashtra, and the second in Gopalpur, Odisha. The feed engineering is happening in Gopalpur. For the first time, we are moving closer to binding agreements for offtake. We should sign by next year," Mittal said.
The methanol project in Nagpur and the proposed green ammonia project in Dighi are in the conceptualisation stage. The company plans to set up a total of four green fuel facilities in the years ahead. The company is in talks with buyers from Europe for long-term offtake agreements for green ammonia.
The manufacturing push comes ahead of a proposed ₹7,600 crore initial public offering of Avaada’s solar module manufacturing arm, Avaada Electro, planned for the end of this year.
Separately, Avaada Ventures Pvt. Ltd., the group’s holding company, recently repaid Brookfield Renewable’s debt in a transaction valued at about ₹6,713 crore.
Gopalpur project
The company's green ammonia plant in Gopalpur, Odisha has received Renewable Fuels of Non-Biological Origin (RFNBO) certification from the European Union for 85% of its fuel. He said the Gopalpur project is expected to be commissioned around 2030.
Speaking of the planned green methanol plant in Nagpur, he said that the company has sought land allocation from the Maharashtra government and the process is ongoing.
"The first project (in Gopalpur) is around ₹20,000 crore. In case of (green methanol plant in) Nagpur, the land allocation and size of the project is not yet finalized, so the number is not clear, but we want to do it in the same range," he said. He added that RFNBO certification is under process for the methanol plant also.
With a major presence in the renewable power generation and solar component manufacturing business, the company is confident of expanding its footprint into industrial applications and fuels, Mittal added. Green methanol can be used for long-haul shipping, while green ammonia along with its use in shipping can also be used in industries including fertilizer plants.
Mittal said that the company would also focus on developing its super factory in Nagpur. Its operations would range from sand-to-solar panels, and it would be an integrated facility which will manufacture all the components in the solar photovoltaic module supply chain, including glass, ingot, wafer, cell and module.
Avaada aims to build 30 gigawatts (GW) of renewable energy capacity by 2030, supported by the group’s planned investment programme of about ₹1 trillion, Mittal said. He said the company would execute its expansion in phases, based on customer demand, grid readiness and capital allocation.
"We see a substantial opportunity as India expands electricity use, electrifies more of its economy and builds domestic manufacturing capability. Avaada's strategy is to serve that demand through renewable generation, manufacturing, storage and green molecules.," he said.
The group is also looking to combine energy storage with solar and wind projects to supply reliable, round-the-clock power to industrial customers. The company sees room for both large renewable projects and distributed generation, including agricultural feeder solarisation, rooftop solar and storage."
About the Author
Rituraj Baruah
Rituraj Baruah is a special correspondent covering energy, housing, urban affairs, heavy industries and small businesses at Mint. He has reported on diverse sectors over the last eight years including, commodities and stocks market, insolvency and real estate; with previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.