India’s <a href="https://www.thenationalnews.com/business/economy/2024/09/09/adnoc-signs-15-year-lng-supply-deal-with-india-to-boost-energy-ties/" target="_blank">Avaada Group</a>, backed by investment firm Brookfield, is in discussions with the UAE to set up a <a href="https://www.thenationalnews.com/business/energy/2024/10/28/mena-regions-first-green-hydrogen-based-steel-project-begins-operations-in-the-uae/" target="_blank">green hydrogen</a> and ammonia plant in the country, which may have a capacity of up to a million tonnes. The <a href="https://www.thenationalnews.com/business/economy/2024/10/17/ardian-considering-co-investment-in-green-hydrogen-with-masdar-and-pif/" target="_blank">renewable energy company</a> held talks with the Abu Dhabi government to secure energy banking facilities, which could allow it to set up the plant in the emirate, Avaada chairman Vineet Mittal told <i>The National</i> during the Abu Dhabi International Petroleum Exhibition and Conference (Adipec). Energy banking facilities enable the storage of excess renewable energy, typically from solar or wind power. This stored energy can be released into the grid during periods of high demand or low renewable energy generation. Mr Mittal said that Avaada typically handles projects with capacities between 500,000 and one million tonnes, adding that shortage of energy banking mechanisms is a big challenge as renewable energy is intermittent in nature. "If you get the support [to trade] with the grid, then that makes it more viable to generate green ammonia," he added. Green ammonia is produced by combining hydrogen, generated through electrolysis powered by renewable energy sources like wind or solar, with nitrogen extracted from the air. It is expected to play a key role in decarbonising shipping, power generation and steelmaking. The UAE and India have been strengthening their energy partnership in recent years, especially since demand for energy in the South Asian country is expected to increase by nearly 35 per cent by 2035, according to the International Energy Agency. Companies such as Adnoc, Masdar, and Taqa are working on various clean energy projects in the UAE. Mr Mittal said that these companies could team up with Indian firms for engineering, procurement, and construction services. He also said Middle Eastern sovereign wealth funds have not invested significantly in India's energy transition, a sector that has seen substantial bets from western investors. Based in India’s financial capital, Mumbai, Avaada is involved in various aspects of clean energy, including producing solar panels, generating renewable electricity, and working on large-scale projects for green hydrogen, methanol, ammonia, and sustainable aviation fuels. Last year, the company raised $1.07 billion to fund its green hydrogen and green ammonia ventures in India as a part of its $1.3 billion fund raise plan. Brookfield Renewable, through its Brookfield Global Transition Fund (BGTF), invested up to $1 billion in Avaada. The company is not planning to raise more funds in the immediate future, its chairman said. “We are a profit-making company [and] we are generating lot of cash flow. Our focus is execution, execution and execution, nothing else,” Mr Mittal said. Indian solar manufacturers face stiff competition from Chinese manufacturers, which have a dominant position in the global solar market. China’s module manufacturing capacity nearly tripled during 2022, from about 198 gigawatts a year to about 562 gigawatts, and then rose by a further 84 per cent to over one terawatt a year at the end of 2023, according to Wood Mackenzie. India’s government has set a solar module production capacity target of 100 gigawatts by 2026. It stood at 64.5 gigawatts at the end of last year. "We can compete and co-operate in the domestic market, the cake is big enough for many players to exist in India,” Mr Mittal said.