NTPC Green Energy Ltd. (NGEL), the clean energy subsidiary of NTPC Ltd., India's largest thermal power producer, is set to develop a green hydrogen hub at Pudimadaka, near Visakhapatnam in Andhra Pradesh.

The $21 billion project aims to generate green hydrogen using renewable energy sources, which aligns with India's National Green Hydrogen Mission to become the world leader in green hydrogen production.

Green hydrogen is created by ionising water into hydrogen and oxygen by electrolysis driven by renewable energy, resulting in zero carbon emissions.

NTPC's program is planned to target domestic and foreign markets, emphasising decarbonising industries, including steel, cement, and chemicals.

The project is also expected to attract significant international investment, strengthening India's renewable energy sector.

In addition to promoting India's green energy dreams, the centre is intended to create significant job opportunities and boost the country's economy.

NTPC intends to cooperate with foreign corporations and technology suppliers to guarantee that the project satisfies global standards.

This program is key to India's commitment to meeting renewable energy objectives and contributing to global environmental initiatives.

NTPC is laying the groundwork for a greener, more sustainable energy future by investing in green hydrogen.

India intends to increase green hydrogen production to 5 million tonnes per year by 2030, up from nearly nil now, to decarbonise heavy sectors such as refineries and steel mills and become a key fuel supplier to global markets. State energy firms like NTPC and billionaires Gautam Adani and Mukesh Ambani support the objective.

The investment will comprise 20 gigawatts of renewable energy capacity, creating 1,500 tonnes of green hydrogen daily. The complex will also generate 7,500 tonnes per day of derivatives such as green methanol, green urea and sustainable aviation fuel, particularly for the export market, according to the official announcement.

Pudimadaka, once the location of an imported coal-fired power station, is being transformed into a renewable energy centre, indicating NTPC's growing commitment to sustainable energy.

Green hydrogen and its related compounds, such as green ammonia, are considered essential resources for decarbonising the world's hard-to-abate sectors, such as oil refineries, fertiliser and steel, while increased costs impede acceptance. Companies in India are looking for offtake arrangements in export markets such as Europe and Asia, while local customers baulk at the expense.