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The Avaada group, which plans to build a 1 million-tons-a-year green ammonia project, is working towards putting up 4 GW of renewable energy capacity to support the ambition. The renewable energy will be used to split water and produce green hydrogen, a raw material for green ammonia.
3GW of solar capacity is coming up in Rajasthan; when it will be commissioned in 2026-27, it might, well be the country’s largest single location solar plant, Vineet Mittal, Chairman, Avaada Group, told businessline today.
Manufacturing electrolysers
Avaada also intends to get into the manufacture of electrolysers, for which it is in talks with a few foreign companies.
Overall, Avaada would invest $5 billion into the green ammonia business, Mittal said.
Avaada was born in 2016, soon after Welspun Renewable Energy, co-founded by Mittal that had a portfolio of 1.14 GW of renewable energy assets, was sold off to Tata Power Renewables for ₹9,250 crore. Today, Avaada has 4GW of wind and solar plants in operation; another 7 GW is planned, including 1 GW under construction.
Mittal said the average tariff the company earns across the 4GW that are generating is around ₹3.25; tariffs are likely to remain at that level in the future, too. Three-fourth of the capacity is under power purchase agreements with Discoms, the rest is sold to commercial and industrial customers. Avaada does not sell any electricity over the energy exchanges.
Module manufacture
Avaada is also getting into the manufacture of solar panels. For starters, it would begin with a 5GW plant that would buy cells and make modules, but in the long term, the idea is to fully integrated, right from silicon to modules. The company will be applying for incentives under the PLI scheme, but the project is not dependent upon PLI, because “many States are offering good incentives”. For technology for the venture, Avaada is tying up with “a strong German partner”, whose name will be revealed shortly.
The company would announce the location of the plant within two months, Mittal said.
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