$21 billion green hydrogen hub in Andhra to fuel decarbonization drive

NTPC Green Energy Ltd, the clean energy arm of thermal power producer NTPC Ltd, is developing a $21 billion (Rs1.8 trillion) green hydrogen hub in Pudimadaka, near the port city of Visakhapatnam.

The project in Andhra Pradesh state will be the first such initiative under the government’s National Green Hydrogen Mission, a statement said. Prime Minister Narendra Modi laid the foundation stone on Wednesday.

Once operational, the hub will produce 1,500 tons per day of green hydrogen and 7,500 tons per day of derivatives, including green methanol, green urea and sustainable aviation fuel, primarily targeting the export market, the statement said.

India is targeting a non-fossil energy capacity of 500 gigawatts by 2030.

Pudimadaka, earlier the site for an imported coal-fired power station, is now being transformed into a clean energy hub, reflecting the thermal power producer’s shift towards green energy.

Green hydrogen, produced using renewable energy to split water into hydrogen and oxygen, is crucial for decarbonizing industries such as refineries, fertilizers, and steel. With high domestic costs limiting demand, Indian producers are focusing on exports, including to Europe and Asia.

India, which currently produces negligible green hydrogen, plans to scale up to 5 million tons annually by 2030 to support decarbonization in key sectors.

On Wednesday, the prime minister also inaugurated and laid the foundation for railway and road projects worth $2.27 billion, including the South Coast Railway headquarters in Visakhapatnam.

Modi also laid the foundation for a bulk drug park in Nakkapalli, Anakapalli district, aimed at boosting jobs and economic growth, leveraging its proximity to the Visakhapatnam-Chennai Industrial Corridor and the Visakhapatnam-Kakinada Petrochemical Region.

The PM also laid the foundation for the Krishnapatnam Industrial Area (KRIS City) in Tirupati district under the Chennai-Bengaluru Industrial Corridor.

As a flagship greenfield smart city project, KRIS City expects $1.2 billion (about ₹10,500 crore) in manufacturing investments and aims to create 100,000 jobs.