NGEL in Talks with Global Airlines for Sustainable Aviation Fuel Supply
Key Ideas
- NTPC Green Energy Ltd (NGEL) is engaging in discussions with international airlines like British Airways and Lufthansa to provide sustainable aviation fuel (SAF) from its green hydrogen hub in Andhra Pradesh.
- NGEL plans to start producing SAF at its green hydrogen hub in 2026-27, along with green molecules like hydrogen, ammonia, methanol, and urea, aiming for a significant increase in production capacity.
- The demand for SAF is on the rise globally, with countries introducing mandates for its use by airlines, making it a promising market for NGEL and other companies venturing into sustainable aviation fuel production.
- Indian state-owned energy firms like Indian Oil Corp. and Bharat Petroleum are also entering the SAF sector, aligning with India's target of achieving net zero emissions by 2070.
NTPC Green Energy Ltd (NGEL) is currently in talks with major global airlines such as British Airways, Lufthansa, Singapore Airlines, and Virgin Atlantic to supply sustainable aviation fuel (SAF) from its green hydrogen hub in Andhra Pradesh. NGEL is at the initial stages of negotiations with potential SAF buyers and awaits the establishment of SAF standards in India and globally to finalize supply agreements. NGEL's green hydrogen hub in Pudimadaka, Andhra Pradesh, slated to start production in 2026-27, plans to produce a variety of green molecules, including SAF, with a projected capital expenditure of ₹1.85 trillion. The hub, spread over 1,600 acres, aims to produce 1,500 tonnes of SAF daily alongside green hydrogen, ammonia, methanol, and urea. The move towards green molecules aligns with NTPC's strategy to decarbonize its operations and expand into renewable energy sectors. The article also highlights the increasing demand for SAF globally, with countries introducing mandates for its usage by airlines, presenting a growing market opportunity. Additionally, Indian state-owned energy companies like Indian Oil Corp. and Bharat Petroleum are also venturing into SAF production, in line with India's goal of achieving net zero emissions by 2070.