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Business News/ Companies / News/  Avaada taps Brookfield for $1 bn

Avaada taps Brookfield for $1 bn

Brookfield Renewable, through its Brookfield Global Transition Fund (BGTF), will be investing up to $1 billion in Avaada Ventures Pvt. Ltd, according to a company statement.

Vineet Mittal, chairman and founder, AvaadaPremium
Vineet Mittal, chairman and founder, Avaada

NEW DELHI : Avaada Group said on Wednesday it has raised $1.07 billion from Brookfield to fund its green hydrogen and green ammonia ventures in the country as a part of its ongoing $1.3 billion fundraising plan.

Brookfield Renewable, through its Brookfield Global Transition Fund (BGTF), will be investing up to $1 billion in Avaada Ventures Pvt. Ltd, according to a company statement. In addition, Global Power Synergy Public Company (GPSC) will invest $68 million in Avaada Energy Private Ltd for releasing debt obligations and supporting the growth. The group is also in advanced discussions with potential investors to raise another $200 million.

The group has expanded its footprint into the solar PV supply chain with the manufacturing of solar cells and modules. Avaada currently operates a renewable energy portfolio of 4 GW with plans to reach 11 GW by 2026.

Further, Avaada has won a bid under the production linked incentive (PLI) scheme launched by the government for setting up 3-GW ingots, cell, and module manufacturing facility.

Vineet Mittal, chairperson and founder, Avaada said the group is building “an integrated ‘Sand to molecule’ business aligned for the global energy transition towards decarbonization."

He said the collaboration with Brookfield “will support us in pursuing exciting opportunities as we play a critical role in meeting the exponential growth of sustainable energy and position ourselves at the forefront of the global energy transition."

Mittal said Avaada’s first green hydrogen project would primarily cater to export demand. Recently, Avaada invited bids for EPC (engineering, procurement and construction) contract for 500,000 metric tonne per annum green ammonia plants to be built at a “coastal location in the eastern part of India".

Nawal Saini, managing director, renewable power and transition, Brookfield said, “This strategic partnership will leverage Brookfield’s global track record, access to capital and operational expertise alongside Avaada’s strong local footprint, to enable their vision for the energy transition business."

Recently, Avaada Energy, an arm of Avaada Group secured a 200 MW (DC) solar power project from Gujarat Urja Vikas Nigam Ltd (GUVNL) at a record-low tariff of Rs. 2.75 ($0.033) per kWh. The project was awarded through competitive bidding, followed by an e-Reverse auction held by GUVNL. As per bid terms, PPA will be signed between two entities for 25 years, and the project will be commissioned within 18 months. The plant will produce 370 million units of electricity per year, leading to a reduction of around 3,44,470 tons of CO2 equivalent emissions annually. This solar project has the potential to provide green energy to power 2.5 lakh households.

Avaada Group is an integrated energy platform with business interests ranging from manufacturing solar cells, modules and electrolysers to renewable power generation, green hydrogen, and green ammonia production. Its portfolio consists of 4 GW and the firm plans to reach 11 GW by 2026 and 30 GW by 2030. GPSC is a 42.9% equity partner in Avaada Energy, the renewable arm of the Avaada Group.

The solar manufacturing business of Avaada is in the advanced stages of developing a manufacturing facility for wafer, cell, and modules. The group is also executing Green Ammonia projects across multiple geographies and plan significant capacity addition to meet the domestic and international demand for the clean fuel through a separate business vertical.

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Published: 26 Apr 2023, 10:40 PM IST
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