NTPC Green Energy Ltd (NGEL), a wholly-owned subsidiary of NTPC, India’s largest power producer, has signed a memorandum of understanding (MoU) with the Maharashtra government to develop green hydrogen projects and its derivatives in the state. The MoU, signed on January 29, 2024, is part of the state’s Green Investment Plan for the next five years and envisages a potential investment of approximately ₹80,000 crore.
What are green hydrogen projects?
Green hydrogen is hydrogen produced from renewable energy sources such as solar, wind or hydro power. It is considered a clean and sustainable alternative to fossil fuels as it does not emit any greenhouse gases or pollutants when used. Green hydrogen can be used for various applications such as transportation, industry, power generation and storage.
What are the details of the MoU?
According to the MoU, NGEL will develop green hydrogen and its derivatives (green ammonia, green methanol) of up to 1 million tonne capacity per annum in Maharashtra. It will also develop pumped storage projects of 2 GW and renewable energy projects with or without storage up to 5 GW in the state. The MoU was exchanged between Chief Executive Officer, NGEL, Mohit Bhargava and Deputy Secretary (Energy), Government of Maharashtra, Narayan Karad in the presence of Chief Minister of Maharashtra Eknath Shinde, Deputy Chief Minister Devendra Fadnavis and other senior officials in Mumbai.
Why is this project important?
The project is expected to boost the state’s renewable energy capacity and create employment opportunities. It will also help in reducing the carbon footprint and enhancing energy security. The project aligns with the central government’s vision of making India a global leader in green hydrogen production and consumption. NTPC is in the path of building renewable energy capacity of 60 GW by 2032. NGEL aims to be the flag bearer of NTPC’s renewable energy journey with an operational capacity of over 3.4 GW and 26 GW in pipeline including 7 GW under implementation.