NTPC’s Clean Energy Arm to Build $21 Billion Green Hydrogen Hub

NTPC Green Energy Ltd., the clean energy subsidiary of NTPC Ltd., India's largest thermal power producer, is set to embark on an ambitious green hydrogen hub project in Pudimadaka, Andhra Pradesh. With an estimated cost of $21 billion (Rs 1.8 trillion), this development marks a significant milestone in India's National Green Hydrogen Mission.

The project, located near Visakhapatnam, represents India's first major step under its National Green Hydrogen Mission. The government has outlined a strategy to scale green hydrogen production from nearly zero to 5 million tons annually by 2030. This initiative aims to decarbonize heavy industries, such as refineries and steel mills, and position India as a key supplier of green hydrogen globally.

Prime Minister Narendra Modi is slated to lay the foundation stone for the project on January 8, highlighting the government's commitment to renewable energy and carbon-free fuel production. The project will harness renewable energy to produce green hydrogen by splitting hydrogen and oxygen atoms in water, a clean and sustainable method of fuel generation.

Details of the Project

NTPC Green Energy Ltd.'s $21 billion investment will include the establishment of 20 gigawatts of renewable energy capacity. This will enable the production of 1,500 tons of green hydrogen daily, along with 7,500 tons of derivatives such as green methanol, green urea, and sustainable aviation fuel. These products are primarily intended for export markets, including Europe and Asia, where demand for sustainable energy solutions is growing.

Originally planned as a site for an imported coal-fired power station, Pudimadaka's transformation into a clean energy hub underscores NTPC’s shift towards renewable energy. This pivot aligns with global efforts to decarbonize industries that are traditionally hard to abate, such as oil refining, fertilizer production, and steel manufacturing.

Conclusion

The NTPC Green Energy project at Pudimadaka symbolizes a significant shift in India's energy strategy, emphasizing sustainable and renewable energy solutions. While challenges remain, particularly in cost adoption, the initiative positions India as a leader in the global green hydrogen market, promising substantial environmental and economic benefits.