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NTPC Signs Land Lease Agreement to Establish Largest Green Hydrogen Hub in India

Last Updated on 21st February 2024

NTPC Green Energy Ltd. and Andhra Pradesh Industrial Infrastructure Corporation have signed a long-term land lease agreement spanning 1200 acres for the development of an USD 8 billion Integrated Green Hydrogen Hub in Pudimadaka, Vishakhapatnam, Andhra Pradesh. Once fully operational, this project will stand as India's largest green hydrogen production facility, boasting a capacity of 1200 tons per day.

 

The investment encompasses the development of the hub and associated infrastructure. Furthermore, the initiative holds promise for bolstering the local economy and advancing sustainable energy practices in the region.

 

NTPC Signs MoU to Establish Largest Green Hydrogen Hub in India

 

There will be three phases to the project's completion by 2032:

 

 

Outlay (USD)

Outlay (INR)

Completion

Phase-1

USD 82 Million

INR 681 Crore

2026

Phase-2

USD 3.76 Billion

INR 31,200 Crore

Not Disclosed

Phase-3

USD 4 Billion

INR 33,489 Crore

2032

 

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Beyond large-scale green hydrogen production, the hub will foster a comprehensive ecosystem. This includes the conversion of hydrogen into its derivatives, like green ammonia and green methanol, catering to both domestic and export markets. Further, the project plans to create a world-class infrastructure for related industries, including electrolyzer and fuel cell manufacturing, testing facilities, and incubation centers for innovative startups.


 

NTPC, with its vast experience in power generation and renewable energy projects, is well-positioned to spearhead this green hydrogen initiative. The company's subsidiary, NTPC Green Energy Limited (NGEL), will be the executing agency for the project. NGEL has already collaborated with various state governments and port authorities to establish green hydrogen hubs across India, showcasing its commitment to clean energy leadership. To further learn about the projects executed by NGEL, check out our Indian green hydrogen database.

 

Read: Adani Group is Planning to Raise $2.6 Billion for Green Hydrogen and Infrastructure Projects

 

What is an Integrated Green Hydrogen Hub?

 

NTPC Signs Land Lease Agreement to Establish Largest Green Hydrogen Hub in India

representative image

 

An integrated green hydrogen hub is a complex system designed to facilitate the production, transportation, storage, and usage of green hydrogen within a specific geographic area. It serves as a complete ecosystem, bringing together various stakeholders 

 

Key Components:

  • Renewable Energy Source
  • Electrolyzer Facility
  • Hydrogen Storage
  • Distribution Infrastructure

 

The concept of integrated green hydrogen hubs is still evolving, with various projects at different stages of development. Several challenges remain, including cost competitiveness, infrastructure development, and regulatory frameworks. 

 

Read: Avaada Group Starts the Construction of $3 Billion Green Hydrogen and Ammonia Project in Odisha

 

About Andhra Pradesh Industrial Infrastructure Corporation


The Government of Andhra Pradesh established the state-owned Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) in 1973 to promote industrial development in the region. It is responsible for developing and managing industrial parks, providing infrastructure facilities, and attracting investments. 

 

Key functions include:

 

  • Land acquisition 
  • Development of industrial parks
  • Providing infrastructure
  • Monitoring the implementation of industrial projects

 

APIIC is implementing the Andhra Pradesh Industrial Policy 2020–23, which aims to attract investments of INR 2.5 lakh crore and create 5 lakh jobs.

 

Andhra Pradesh Industrial Policy 2020–23
The Andhra Pradesh Industrial Policy 2020–23, which concluded on March 31, 2023, aimed to make the state a global investment destination by focusing on balanced growth across regions and communities, reducing the cost of doing business, and promoting entrepreneurship. The main objective of the policy is to support industries across the entire business value chain, from approvals and setup to operations and scaling up.

 

Read: BPCL and CIAL to Develop World's First Green Hydrogen Plant Within an Airport at Cochin

 

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Each project will have all the essential details, such as scope, capacity, CapEx, status, project description, companies involved, funding information, location, periodic updates, important event dates like construction start dates, commissioning dates, and key contact information of project owners and stakeholders.

 

The database is a vital resource for a wide range of entities, including energy companies, EPC companies, facility operation and maintenance (O&M) companies, consulting and advisory firms, investors, energy investment firms, project finance agencies, research and development organizations, regulatory bodies, and law firms.

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