ARKANSAS, February 5 (Future Headlines)- NTPC Green Energy Limited, the green energy subsidiary of India’s state-run power producer NTPC Ltd, has formalized a Memorandum of Understanding (MoU) for a substantial green hydrogen project in the state of Maharashtra. The agreement, made in collaboration with the Maharashtra state government, is part of the state’s broader green investment plan for the next five years. The ambitious project represents a potential investment of around INR 800 billion (USD 9.65 billion / EUR 8.87 billion).
The project envisions the development of up to 5 GW of renewable energy capacity. This can include various sources, such as solar and wind energy, contributing to Maharashtra’s renewable energy targets. Renewable energy generation may or may not include a battery storage component. Energy storage is a critical element for ensuring grid stability and maximizing the utilization of renewable energy.
The project also proposes the implementation of pumped hydro storage with a total capacity of 2 GW. Pumped hydro storage is a form of grid energy storage that involves pumping water to a higher elevation during times of excess energy and releasing it to generate electricity during periods of high demand. A significant aspect of the plan is the establishment of a green hydrogen plant with an annual production capacity of up to one million tons. Green hydrogen is produced using renewable energy sources, and its adoption is crucial for decarbonizing various sectors, including industry and transportation.
The proposed investment of approximately INR 800 billion underscores the scale and significance of the project, positioning it as a major contributor to the green energy landscape in Maharashtra. The comprehensive plan aligns with NTPC’s broader strategy of achieving 60 GW of renewable energy capacity by 2032. NTPC Green Energy Limited currently boasts over 3.4 GW of installed renewable energy capacity in its portfolio, with an additional 26 GW of projects in the pipeline. Notably, 7 GW of projects are under active implementation.
The green hydrogen project in Maharashtra holds strategic importance in advancing India’s transition to a sustainable and low-carbon energy future. Green hydrogen has emerged as a key solution for addressing carbon emissions and achieving energy decarbonization goals. The proposal is in line with Maharashtra’s green investment plan, indicating the commitment of both NTPC and the state government to fostering clean and renewable energy initiatives. The development of significant renewable energy capacity, coupled with energy storage and green hydrogen production, reflects a holistic approach to the energy transition.
As India continues to pursue ambitious renewable energy targets and emphasizes green hydrogen as a cornerstone of its energy strategy, projects of this scale contribute to the country’s efforts to meet its climate goals and build a resilient and sustainable energy infrastructure. The successful realization of this project could set a precedent for similar initiatives in other regions, further accelerating India’s clean energy transition.
Reporting by Kevin Wood; Editing by Sarah White