Modi lays foundation stone of NGEL’s green hydrogen hub in Andhra Pradesh | Mint

Prime minister Narendra Modi on Wednesday laid the foundation stone of NTPC Green Energy Ltd’s (NGEL) green hydrogen hub at Pudimadaka near Visakhapatnam in Andhra Pradesh, among several other infrastructure projects in the state.

It would be the first green hydrogen hub under the Centre’s National Green Hydrogen Mission.

“It is now time for Andhra Pradesh to become a centre for futuristic technologies,” Modi said, while emphasizing the need to lead in emerging technologies, including green hydrogen. The National Green Hydrogen Mission was launched in 2023, with a target of producing 5 million tonnes of green hydrogen by 2030.

According to press release issued by the government, Modi said that in the initial phase, two green hydrogen hubs would be established, one of which will be in Visakhapatnam. The prime minister stated that Visakhapatnam will be among the few cities globally with large-scale green hydrogen production facilities. He highlighted that this green hydrogen hub will create numerous job opportunities and develop a manufacturing ecosystem in Andhra Pradesh.

Modi laid the foundation stone virtually from Visakhapatnam. 

Green hydrogen alliances

The project is being developed jointly by NGEL, the renewable arm of NTPC Ltd, and Non-conventional Energy Development Corporation of Andhra Pradesh Limited (NREDCAP), the renewable arm of the government of Andhra Pradesh.

NGEL and NREDCAP have already signed a joint venture agreement for development of 20 GW renewable energy projects, 1,500 tonne per day green hydrogen and 7,500 tonne per day green hydrogen derivatives, including green methanol, green urea and sustainable aviation fuel, making it one of India’s largest integrated green hydrogen production facilities.

The project is expected to bring around ₹1.85 trillion investment to the state and help India achieve its non-fossil energy capacity target of 500 GW by 2030.

NGEL has signed a similar agreement with the Rajasthan government to develop 25 GW of renewable energy projects in the state. A company statement said that going forward, NGEL would explore similar kind of collaborations with other state governments as well.

Mint had earlier reported that NGEL is already in talks with global players for supply of green hydrogen, sustainable aviation fuel (SAF), and green methanol from this upcoming hub.

The diversification towards green molecules comes against the backdrop of NTPC’s ambitious plan to decarbonize its operations and enter new-age green energy spaces, as the window for coal-based power, the power generator’s conventional business, is fast closing.

India’s largest power generation utility, through its green energy arm NGEL, plans to pump in ₹5 trillion in the green energy and green molecule space by 2030. NGEL currently has a capacity of about 6 gigawatts (GW), and it aims to expand it to 19 GW by 2026-27. About 90% of the planned 60 GW by 2030 would comprise solar power capacity.