NTPC to build green hydrogen hub in Visakhapatnam, eyes exports to Japan, South Korea and Germany
State-owned power producer NTPC is developing a green hydrogen hub in Visakhapatnam, Andhra Pradesh, and is in talks with potential offtakers in South Korea, Germany and Japan, its Chairman and Managing Director Gurdeep Singh said on Tuesday.
Mr. Singh was speaking at the 20th India Energy Summit, organised by the Indian Chamber of Commerce. "We will be able to produce green ammonia or green methanol," he said, adding that NTPC plans to source carbon dioxide (CO₂) from its nearby Simhadri power station through a 20-km pipeline that is currently under construction.
Green hydrogen is produced by splitting water using electricity generated from renewable sources such as solar and wind, so that the process does not release carbon dioxide. It is widely viewed as a cleaner alternative to hydrogen made from fossil fuels, though it currently costs more to produce.
Green ammonia is made by combining green hydrogen with nitrogen, and green methanol by combining it with carbon dioxide. Both are easier to store and transport than hydrogen in its gaseous form, which is why they are often proposed as carriers for export markets. NTPC's plan to draw CO₂ from the Simhadri plant, a coal-based thermal power station in Andhra Pradesh, would use an existing industrial stream for that purpose.
Mr. Singh said the lower-carbon compounds could eventually evolve into a commercially viable business and potentially expand NTPC's renewable energy portfolio. He cautioned, however, that scaling up demand would be critical to the sector's success.
"The requirement is that green hydrogen must move from pilot to dependable demand," he said.
India launched the National Green Hydrogen Mission in January 2023, with an outlay of ₹19,744 crore and a target of producing five million tonnes of green hydrogen a year by 2030. The mission seeks to make the country a global hub for the production, use and export of green hydrogen and its derivatives. Several public and private firms have since announced pilot projects, though large-scale commercial production remains limited.
Industry observers have pointed to cost as the main constraint. Green hydrogen is still significantly more expensive than hydrogen produced from natural gas or coal, largely because of the cost of electrolysers and of the renewable power needed to run them. Long-term offtake agreements, port and shipping infrastructure, and stable policy support are seen as essential for export-oriented projects to succeed.
Visakhapatnam is a coastal city with port infrastructure of the kind that export-focused projects typically require, which is relevant to NTPC's stated interest in buyers in East Asia and Europe.
NTPC, which began as a thermal power generator, has been expanding its renewable energy capacity in recent years. Its renewable arm, NTPC Green Energy Ltd, was listed on the stock exchanges in 2024. The company has not disclosed a timeline or an investment figure for the Visakhapatnam hub, and details of the talks with prospective offtakers have not been made public.
