NTPC Green plans ₹30,000 cr-transmission network for AP green hydrogen hub

New Delhi: State-owned NTPC Green Energy Ltd is planning to build a ₹30,000 crore transmission network to power its upcoming green hydrogen hub in Andhra Pradesh, two people aware of the matter said.

The network, which has a capacity of 20 GW and will remain separate from the national power grid, will be India's first such network purpose-built for a project. It will initially connect NTPC's proposed solar project in Anantapur to India's first hydrogen hub in Pudimadaka, both located in Andhra Pradesh. The hub, coming up across 1,600 acres, is targeted to produce 1,500 tonnes of green hydrogen every day.

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Green hydrogen is produced by breaking water into hydrogen and oxygen in electrolyzers powered by clean energy. The clean fuel finds use in refineries and manufacturing of steel and aluminium.

"It's still in the conceptual stage. Once the company has clarity on the land allotment, then it will move fast on setting up the network. The plan is to set up a 20 GW transmission system by 2032. However, at any given point in time, the network will be managing 7-8 GW of round-the-clock renewable energy," one of the two people cited above said, adding NTPC Green has requested the state government to allot land for the project.

Talks to sell green hydrogen

Earlier, Mint reported that NTPC Green is in talks with Japan's Toyo Engineering Corp. and Norway's Getek AS to sell green hydrogen from the hub. Separately, Australia's Fortescue is in talks with the company to produce green hydrogen at Pudimadaka. The latest NTPC Green project gains significance as transmission is key to achieving India's green energy target of 500 GW by 2030. According to the National Electricity Plan, there is an investment opportunity of over ₹9.5 trillion in India's transmission sector.

Given the projected size of the green hydrogen hub, it may also need to source power from other clean power generators from within and outside the state, the people cited above said. Apart from Anantapur, Kurnool in Andhra Pradesh, which has an ultra mega solar power park, is under consideration for connecting to the hydrogen hub.

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“Setting up the transmission line requires about 1-1.5 years. The complete network would be ready by 2032, by when NTPC Green also aims to achieve an installed RE generation capacity of 60 GW," the second person said.

Total expenditure for green energy generation, setting up transmission infrastructure and installing a switcher at the hub for receiving green power would be about ₹1 trillion, the second person said, adding up to 30% of it would go into transmission. NTPC Green may also seek the state's financial assistance for the transmission project.

Foundation to be laid soon

The foundation-laying ceremony for the project, which was initially expected by end-November, is expected soon, both people mentioned above said.

Queries mailed to NTPC and the Andhra Pradesh government's energy department remained unanswered till press time.

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NTPC, India’s biggest power generation utility, has a major focus on green hydrogen space as it looks to diversify into the new energy ecosystem through its subsidiary NTPC Green. It plans to invest ₹5 trillion in green energy by 2030, including green hydrogen. NTPC Green will also offer companies the facility of producing green hydrogen at the hub, akin to the plug-and-play model at special economic zones.

NTPC Green closed at ₹141.15 on the BSE on Wednesday, down 4.40% from its previous close, after hitting an all-time of ₹155.3 on Wednesday. The shares were listed at ₹111.6 per share on 27 November, against an issue price of ₹108.