Brookfield Renewable is investing $1 billion (about Rs 8,200 crore) in Avaada Ventures Pvt. Ltd to help finance the renewable energy company's green hydrogen and green ammonia businesses.
The renewable energy arm of Canada's Brookfield Asset Management Inc. will make the investment via the Brookfield Global Transition Fund, Avaada Group said Wednesday.
Thailand's Global Power Synergy Public Company Ltd will separately invest $68 million in Avaada Energy Pvt. Ltd to help it cut debt and support growth. The Thai company had acquired a 41.6% stake in Avaada Energy in 2021 for about $453 million.
Avaada Group also said it is in advanced talks with potential investors to raise another $200 million, taking its total fundraise in this round to almost $1.3 billion.
Vineet Mittal, Chairperson and Founder of Avaada Group, said Brookfield's investment will help the company meet growing demand for sustainable energy and position itself "at the forefront" of the global energy transition.
Mittal had previously co-founded Welspun Renewable Energy Pvt Ltd. He started Avaada after Tata Power Co. acquired Welspun Renewable for $1.4 billion in 2016. The proceeds from the sale were divided between Mittal and BK Goenka, the two partners at Welspun.
Avaada develops clean-energy projects including utility-scale, rooftop and off-grid solar power plants. It operates a portfolio of 4 gigawatt and plans to expand its capacity to 11 GW by 2026. Avaada has also expanded into the solar photovoltaic supply chain with manufacturing of solar cell and module. Besides, it is starting manufacturing of green hydrogen and green ammonia as part of its energy transition business.
Nawal Saini, managing director for renewable power and transition at Brookfield, said the Brookfield Global Transition Fund focuses on investments that accelerate the progress to a net-zero carbon economy.
"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," Saini said.
