(Bloomberg) -- India's Avaada Group signed an initial pact Wednesday to invest 400 billion rupees ($5 billion) in a green ammonia project in the country's northern state of Rajasthan, the company said.
The renewable energy producer plans to build a 1 million ton-a-year green ammonia facility in the solar energy-endowed province, creating direct employment for 3,500 people, Avaada said in an emailed statement. Avaada is planning to build the project at Kota in Rajasthan.
India unveiled a policy earlier this year to promote production of green hydrogen and green ammonia, with an ambition to become a global hub of manufacturing and exports of these commodities. The world's third-largest emitter of greenhouse gases will need such projects for the transition to clean energy for its own heavy industries, as it seeks to turn carbon neutral by 2070.
The policy announced in February offers investors benefits, such as free inter-state transmission of renewable power, which will be used for making green hydrogen and green ammonia. The government has said it plans to offer more “sweeteners” to encourage investors.
The government's push has drawn investment commitments for billions of dollars from some of the largest conglomerates in the country, including the Adani Group and Reliance Industries Ltd.
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