NTPC Green Energy to Build $21 Billion Green Hydrogen Hub in Andhra Pradesh

India’s NTPC Green Energy Ltd. is set to develop a $21 billion green hydrogen hub in Pudimadaka, Andhra Pradesh, as part of the country’s National Green Hydrogen Mission. The project will produce 1,500 tonnes of green hydrogen and 7,500 tonnes of derivatives daily, contributing to India’s ambitious 500 GW renewable energy capacity target by 2030.

This mega-project will integrate 20 GW of renewable energy capacity, making it one of India’s largest green hydrogen production facilities.

Export-Oriented Green Derivatives: Methanol, Urea, and SAF

The Pudimadaka hub will manufacture green methanol, green urea, and sustainable aviation fuel (SAF), primarily targeting international markets. With these exports, the project not only boosts India’s position in the global green hydrogen value chain but also accelerates its commitment to renewable energy leadership.

Local Electrolyser Production and Strategic Significance

NTPC’s move aligns with India’s strategy to encourage domestic production of electrolysers. Companies like Reliance Industries and Larsen & Toubro are poised to play a pivotal role in supporting this endeavor by supplying critical components.

Prime Minister Narendra Modi, during his visit to Andhra Pradesh and Odisha, emphasized the significance of this facility. He highlighted India’s progress in fulfilling Paris Agreement commitments and its continued focus on strengthening green energy solutions.

Surging Hydrogen Demand: A Growing Market in India

India’s green hydrogen demand has been on the rise, as evidenced by the oversubscription of the latest green hydrogen auction. The auction saw bids totaling 626,500 tonnes annually, surpassing the 450,000-tonne cap. The three-year incentive scheme offers producers competitive incentives, with rates declining from $0.61/kg in the first year to $0.37/kg by the third.

Transforming India’s Renewable Energy Landscape

The NTPC Green Hydrogen Hub in Andhra Pradesh represents a monumental step toward India’s renewable energy goals. By fostering green hydrogen production, boosting domestic manufacturing, and contributing to global exports, this hub positions India as a key player in the global transition to sustainable energy.