Avaada plans to invest ₹40,000 crore to produce green ammonia and methanol

New Delhi: Avaada-backed PTT Group of Thailand plans to invest approx ₹20,000 crore in a green ammonia plant in Odisha and a green methanol plant in Maharashtra as it expands into low-carbon fuels. The group plans a cumulative investment of approx ₹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 other in Gopalpur, Odisha. Feed engineering is going on in Gopalpur. We are getting close to binding offtake agreements for the first time. We should sign next year,” Mittal said.

The methanol project at Nagpur and the proposed green ammonia project at Dighi are in the conceptualization stage. The company plans to set up a total of four green fuel facilities in the coming years. The company is negotiating long-term agreements with customers from Europe for the purchase of green ammonia.

Production pressure comes before the proposed ₹Avaada’s first public offering of solar module maker, Avaada Electro, for 7,600 million, is planned for the end of this year.

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Separately, Avaada Ventures Pvt. Ltd., the group’s holding company, recently paid off the debt of Brookfield Renewable in a transaction valued at approx ₹6,713 crores.

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 should be commissioned around 2030.

Talking about the planned green methanol plant in Nagpur, he said that the company has requested the Maharashtra government for allotment of land and the process is going on.

“The first project (in Gopalpur) is in the world ₹20,000 million crowns. In case of (green methanol plant in) Nagpur, the land allocation and size of the project is not finalized yet, so the number is not clear, but we want to do it on the same scale,” he said. He added that RFNBO certification is in process for the methanol plant as well.

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With a significant presence in renewable energy generation and solar component manufacturing, the company is confident of expanding its footprint into industrial applications and fuels, Mittal added. Green methanol can be used for long-haul transportation, while green ammonia, along with its use in shipping, can also be used in industries, including fertilizer factories.

Mittal said the company will also focus on developing its super factory in Nagpur. Its operations would range from sand to solar panels and would be an integrated facility that would manufacture all components in the solar PV module supply chain, including glass, ingots, wafers, cells and modules.

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Avaada aims to build 30 gigawatts (GW) of renewable energy capacity by 2030, supported by the group’s planned investment program of approx. ₹1 trillion, Mittal said. He said the company will implement its expansion in phases based on customer demand, network readiness and capital allocation.

“We see a significant opportunity as India expands electricity consumption, electrifies more of its economy and builds domestic manufacturing capacity. Avaada’s strategy is to meet this 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 deliver reliable, uninterrupted electricity to industrial customers. The company sees scope for both large-scale renewable projects and distributed generation, including agricultural solar, rooftop solar and storage.”