NTPC to install 20 GW RE capacity with pumped storage at AP green hydrogen hub.

NTPC, which is setting up a more than ₹1 lakh crore green hydrogen hub in coastal Andhra Pradesh, will install 13.4 gigawatts (GW) of solar power and 6.6 GW of pumped storage project (PSP).

Sources said that India’s largest power producer will set up a total of 20 gigawatts (GW) of renewable power capacity, including storage, which will be utilised for manufacturing green hydrogen through electrolysis.

“The rationale behind creating the hub is to focus on exports in South Asia, particularly for green hydrogen and green methanol. Besides, talks are on for manufacturing green ammonia here and transporting it to the UK,” said one of the sources.

The land at Pudimadaka, a coastal village around 50 km from Visakhapatnam, has been allotted by the AP Industrial Investment Corporation (APIIC), and the project is expected to be completed by 2030, with the first half likely by 2026-27.

NTPC is holding deliberations with domestic and international companies for manufacturing electrolysers and other green energy products and services.

A senior government official explained that NTPC has transferred all its green energy projects to NTPC Green Energy (NGEL). This is part of the Maharatna company’s evolving strategy to expand the renewable business into green energy considering the future growth opportunities in clean energy transition.

“The objective is to create a company that focuses on the entire gamut of green energy technology, products and services. With the expected growth in clean energy initiatives globally, there is a very good chance that NGEL’s valuation may surpass that of its parent in the future,” he added.

The government expects NGEL’s base to grow as India focuses on meeting COP26 pledges and expanding its green energy economy. Through the park, the government aims to target South Asia and European markets for green energy products, services and technologies as India has sufficient land and skilled manpower, a senior government official said.

Sources said that talks are already on with an Australian company for establishing green hydrogen manufacturing facilities, but nothing has been finalised so far.

HBL