Tata Steel share price up after subsidiary signs MoU for green hydrogen plant in Odisha

In a significant development for India's renewable energy sector, Tata Steel Limited and Avaada Group have joined forces to establish a state-of-the-art green hydrogen and ammonia manufacturing unit in Odisha. This collaboration marks a crucial milestone in advancing the country's transition towards sustainable energy and supporting India's ambition to become a global leader in green hydrogen production.

Project Overview

Avaada Group, renowned for its integrated energy platform encompassing solar cell manufacturing, renewable power generation, and more, has signed a Memorandum of Understanding (MoU) with Tata Steel Special Economic Zone Limited (TSSEZL) to embark on this groundbreaking project. The facility will be situated within the Gopalpur Industrial Park in the Ganjam district of Odisha.

While specific financial details of the project remain undisclosed, it is set to be a significant investment in the green hydrogen and ammonia manufacturing sector, reflecting the conducive environment for such ventures in the region. This endeavor aims to create approximately 1,600 direct jobs and 4,000 indirect employment opportunities, while also contributing to an annual reduction of nearly 2 million tonnes of carbon dioxide emissions.

•    Avaada Group's chairman, Vineet Mittal, emphasized the collaboration's focus on expediting the shift to green energy and supporting India's aspirations to become a global green hydrogen manufacturing hub.

•    At the time of reporting, Tata Steel Limited's stock was trading at ₹130.50 on the National Stock Exchange, representing a 0.27 percent increase from the previous close.

•    Avaada Group will acquire 120 acres of land within the Gopalpur Industrial Park to establish a green hydrogen and ammonia production facility capable of producing 0.5 million metric tonnes per annum (mtpa).

•    Hemant Sharma, IAS, Principal Secretary of the Industries Department, highlighted Odisha's comprehensive roadmap for the green fuels sector, with a focus on producing green ammonia from green hydrogen, powered by renewable energy sources.

•    The products manufactured at this facility, green hydrogen, and ammonia, will be exported via the existing Gopalpur Port facility, with a dedicated Utility Corridor ensuring smooth logistics and pipeline connectivity.

•    Manikanta Naik, Managing Director of TSSEZL, emphasized that this investment represents the second significant step in the green hydrogen and ammonia manufacturing sector, showcasing the region's favorable conditions for such endeavors.

•    Avaada Group's founder and Chairman, Vineet Mittal, reiterated the importance of green hydrogen and ammonia production in the global transition towards sustainable energy and their commitment to aiding India in its pursuit of becoming a leading global green hydrogen manufacturing hub.

•    Previously, TSSEZL had signed an MoU with ACME Clean Energy for the establishment of a 1.3 million metric tonnes per annum (mtpa) green ammonia production facility with a substantial investment of INR 27,000 crore will be allocated to the Gopalpur Industrial Park.

Renewable Energy Goals

The green hydrogen sector in India has gained momentum with the introduction of the national green hydrogen mission. Avaada Group has set ambitious targets, aiming to achieve 11GW of operational projects by 2026 and 30GW by 2030. Currently, the company boasts an operational renewable energy capacity of 4GW, with an additional 3GW under construction. In addition to investing in solar and wind energy projects, Avaada Group has expanded its footprint into solar module manufacturing and electrolyzer production.

Furthermore, the company is actively expanding its workforce, with plans to add nearly 3,000 employees over the next two years to support its growing activities in solar module manufacturing and green hydrogen operations.
In June, Avaada Group secured a substantial funding injection of $1.3 billion, marking a significant milestone in India's renewable energy sector. The investment included $1 billion from Brookfield Global Transition Fund and a $233 million infusion from existing shareholder Global Power Synergy Public Co. into Avaada Energy Pvt Ltd.

This collaborative effort between Tata Steel Limited and Avaada Group represents a significant stride toward a more sustainable and eco-friendly future for India, aligning with the country's green energy aspirations and global commitments to combat climate change.