Avaada Group has recently secured pre-certification for its green hydrogen and ammonia project in Gopalpur, Odisha.
The project, which aims to produce 500,000 tonnes of green ammonia annually, has garnered $1.8 billion in financing from REC Limited. This certification by TÜV Rheinland under the EU’s Renewable Energy Directive (RED) II signifies compliance with stringent renewable energy criteria.
The certification of Avaada’s project as compliant with EU regulations is a noteworthy milestone. The EU’s RED II requires renewable energy projects to meet criteria of additionality, hourly matching, and geographical matching to ensure low lifecycle emissions. This pre-certification positions Avaada as a pioneer in India’s green hydrogen landscape, potentially enhancing its competitiveness in the global market.
Avaada claims to be the first in India to complete the design stage certification in line with EU regulations. This positions the company as a front-runner in adhering to international standards, which could facilitate smoother access to European markets. However, it is essential to compare this with similar international efforts. For instance, European companies are also advancing rapidly, backed by substantial governmental and private sector support, potentially setting higher benchmarks for innovation and efficiency.
The project’s compliance with the Renewable Fuels of Non-Biological Origin (RFNBO) standards implies a significant reduction in greenhouse gas emissions compared to conventional hydrogen production. This is crucial as the global hydrogen industry aims to minimize its carbon footprint. Avaada’s project includes production, storage, and transportation of green ammonia, ensuring a comprehensive approach to sustainability.
While the certification reflects a commitment to environmental standards, the actual implementation and operational efficiency will determine its long-term impact. As green hydrogen projects globally strive for cost reduction and technological advancements, Avaada will need to continuously innovate to maintain its leadership position.
Securing $1.8 billion in financing from REC Limited underscores strong financial backing, which is essential for the project’s execution. However, the financial viability will depend on market conditions, including the global demand for green hydrogen and ammonia. The EU’s target of producing 10 million tonnes of green hydrogen and importing an additional 10 million tonnes by 2030 presents a significant market opportunity. Avaada’s ability to capitalize on this demand will be critical.
