NTPC arm invites global green chemical makers to develop projects at Andhra hub

New Delhi: NTPC Ltd’s green energy unit has invited Indian and global green chemical makers to develop projects at its Pudimadaka green hydrogen hub in Andhra Pradesh.

The selected developers would have to source renewable energy, water, or green hydrogen from NTPC Green Energy Ltd (NGEL), according to the expressions of interest (EoIs) document floated by the company on 24 September. EoIs can be submitted by 24 October.

The hub is slated to produce 2.5 million metric tonnes per annum (mmtpa) of green chemicals, including ammonia, methanol, sustainable aviation fuel (SAF) and urea. The hub, which will have a captive port, is expected to aid exports.

Green chemicals use clean energy and processes that do not produce hazardous substances. Green hydrogen is produced through the electrolysis of water using renewable energy.

Once EoI responses are shortlisted, NGEL will consider agreements for land sub-lease, supplying water, green hydrogen, and biogenic carbon dioxide, and for joint ventures with select developers, according to the document.

The tender document said the hub would have 7 GW electrolyzer capacity, 7.5 GW transmission lines from the CTU substation, a captive port, a desalination plant, chemical storage, a logistics area, a utilities area, and common buildings, among other things.

Mint earlier reported that NGEL plans to develop a transmission network with capital expenditure of ₹30,000 crore to power the green hydrogen hub.

In January this year, Prime Minister Narendra Modi laid the foundation stone of a hydrogen hub that is expected to attract an investment of about ₹1.85 trillion. The project is being developed jointly by NGEL 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 to develop 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.

NTPC, India's largest power generation utility, plans to pump in ₹5 trillion into the green energy and green molecule space by 2030 through its arm. The NGEL group, including its subsidiary Ayana Renewable Power, has a total capacity of about 7.37 gigawatts (GW), and it aims to expand it to 60 GW by 2030. About 90% of the planned 60 GW by 2030 would comprise solar power.

In March this year, OGNC NTPC Green Pvt Ltd, a joint venture of NGEL and Oil and Natural Gas Corp., acquired Ayana Renewable Power.

Mint reported in November last year that the renewable energy major is in talks with global players to export green molecules from the hub.