Recently Listed PSU NTPC Green Energy Plans To Build Rs 30,000 Cr Transmission Network; Shares In Focus

State-owned NTPC Green Energy Ltd is planning a project to build a Rs 30,000 crore transmission network designed specifically to support its upcoming green hydrogen hub in Andhra Pradesh, according to a Mint report. This network, with a capacity of 20 GW, will be the country's first transmission system purpose-built to support a green hydrogen project.

NTPC's green hydrogen hub, slated to be located across 1,600 acres in Pudimadaka, Andhra Pradesh, is set to be a major player in the future of India's clean energy landscape. The hub is expected to produce 1,500 tonnes of green hydrogen per day, a clean fuel derived through the process of electrolysis, powered by renewable energy, stated the Mint report citing sources. Green hydrogen is widely used in sectors such as steel manufacturing and refineries and is considered key to reducing carbon emissions in industries traditionally hard to decarbonize.

The transmission network will connect NTPC's proposed solar project in Anantapur to the hydrogen hub in Pudimadaka, laying the foundation for a dedicated renewable energy system. Unlike traditional power grids, this transmission network will remain separate from the national power grid, designed to handle round-the-clock renewable energy. The system is projected to manage between 7 to 8 GW of power at any given time, with the long-term goal of operating at full capacity of 20 GW by 2032, as per the Mint report.

Project Status and Future Plans

Currently, in the conceptual phase, the green hydrogen hub's development is contingent upon land allotment approvals from the state government. Once the land is secured, NTPC Green Energy plans to fast-track the establishment of the transmission network and the hub itself. The company has emphasized the importance of building a transmission infrastructure to meet India's renewable energy targets, including the goal of achieving 500 GW of green energy capacity by 2030, according to Mint.

The green hydrogen hub's transmission network is integral to meeting this goal, as it will enable the seamless transfer of renewable energy from solar power plants to the hydrogen production facility. Additionally, the project may require power sourcing from other clean energy generators across Andhra Pradesh, including the ultra-mega solar power park in Kurnool.

International Collaborations

NTPC Green Energy is in discussions with several international companies. Mint reported that NTPC is negotiating with Japan's Toyo Engineering Corp. and Norway's Getek AS to sell green hydrogen produced at the Pudimadaka hub. Furthermore, the company is in talks with Australia's Fortescue to collaborate on the production of green hydrogen at the site.

Investments

NTPC, India's largest power generation utility, is doubling down on its green energy ambitions. Through its subsidiary, NTPC Green Energy, the company aims to diversify into the burgeoning green hydrogen market, with plans to invest Rs 5 lakh crore in green energy by 2030. The company's green hydrogen hub will serve as a plug-and-play model for businesses looking to produce their own hydrogen, similar to special economic zones that attract industries with ready-to-use infrastructure.

This move positions NTPC Green Energy as a key player in the transition to a low-carbon economy, with its strategic investments in renewable energy and green hydrogen.

The shares of NTPC Green Energy were seen trading with gains of more than 1% at Rs 142.92 per share as of 12:50 pm on the National Stock Exchange (NSE). The stock had delivered gains of more than 32% since listing on November 27.