NTPC's Green Hydrogen Hub: Building Momentum in Andhra Pradesh
Key Ideas
- NTPC is set to begin construction of a green hydrogen hub in Andhra Pradesh, engaging with companies like Toyo Engineering and Fortescue for offtake agreements.
- The hub in Pudimadaka is expected to start operations in three years, focusing on green hydrogen production and renewable energy generation.
- NTPC's subsidiary, NTPC Green Energy Ltd, is driving investments in the green energy space, with plans to invest ₹5 trillion by 2030 and diversify into various sectors like green hydrogen and sustainable fuels.
- India's push towards net-zero targets by 2070 is encouraging both public and private sector companies to explore green hydrogen opportunities to replace grey hydrogen production.
NTPC, a state-run company in India, is gearing up to construct a green hydrogen hub in Andhra Pradesh. The company is actively discussing offtake agreements with potential buyers like Toyo Engineering, Getek AS, and Fortescue. The hub in Pudimadaka is slated to commence operations within the next three years, offering facilities for green hydrogen production using renewable energy sources. Investments in this green hydrogen initiative will be channeled through the IPO-bound subsidiary, NTPC Green Energy Ltd.
NTPC is significantly emphasizing the green energy sector, planning to invest ₹5 trillion by 2030, a substantial increase from the previous target of ₹1 trillion by FY27. This investment will cover various green energy sectors such as solar, wind power, green hydrogen, green ammonia, and sustainable aviation fuel. The company is also venturing into joint ventures, like the one with Indian Oil Corp. Ltd, to supply green energy.
The increasing focus on green hydrogen is in line with India's commitment to achieving net-zero targets by 2070. Both public and private sector energy companies are exploring green hydrogen as a cleaner alternative to grey hydrogen, which relies on polluting inputs like natural gas. With India currently producing and consuming about 6 million tonnes of hydrogen, the shift towards green hydrogen is crucial for sustainable industrial practices in the country.