Avaada Group, an integrated energy platform, which raised Rs 10,700 crore ($1.3 billion) on June 28 is going to utilise the proceeds to fund renewable energy and green hydrogen projects, Group Chairperson Vineet Mittal told Moneycontrol.
"This funding will primarily be targeted at renewable energy generation (capacity addition), energy storage solutions, green hydrogen and its derivatives, and ingots to module solar manufacturing plant," Mittal said in an exclusive interaction post the closure of the deal.
He said that a part of the funding will also go towards Avaada's R&D efforts. "We plan to invest in state-of-the-art technology centre either in Noida or Bengaluru to drive renewable energy innovation, something that aligns closely with our past track record," Mittal said.
The company said this funding round is the largest equity round ever raised by any green energy company in Asia. Giving a break-up of Rs 10,700 crore, it stated that Brookfield Renewables, through its Brookfield Global Transition Fund (BGTF), has committed to investing up to Rs 8,225 crore ($1 billion) in Avaada Ventures Private Limited.
In addition, Global Power Synergy Public Company Limited (GPSC), an existing shareholder with a 42.93 percent equity holding in Avaada Energy Private Ltd (AEPL), has pledged to increase its capital by investing an additional Rs 1,917 crore ($233 million) in AEPL, further supporting the company's growth. This follows GPSC's previous investment of Rs 558 crore ($68 million) in AEPL in April, bringing their total investment in Avaada to around Rs 6,037 crore ($779 million).
"This record-breaking investment will significantly boost India's green growth. It's a testament to our government's commitment to the green economy, providing a catalyst for further investment and innovation in this sector," he said.
Mittal said that the company is also exploring opportunities in the renewable energy market in Southeast Asia and beyond as well. "We will continue our focus in India, given its burgeoning renewable energy market. But, we are also exploring opportunities in Southeast Asia and potentially beyond," he said.
When asked about the company's green hydrogen plans, Mittal said their first engineering, procurement, and construction (EPC) project will be finalised this year. "For green hydrogen and green ammonia business, we are aiming for significant progress in the next 3 years," he said.
He added that the company's focus is going to be on expanding and innovating in the renewable energy space.
Avaada Group has diversified into manufacturing green hydrogen, green methanol and green ammonia, and expanded its footprint into the solar PV supply chain with the manufacturing of solar cells and modules. The company currently operates a renewable energy portfolio of 4 GW and around 7 GW are in different stages of implementation.
The group has also won a production-linked incentive (PLI) of Rs 961 crore ($116.78 million) for 3 GW of wafer-to-module capacity under the PLI scheme rolled out by the government.
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