India launched earlier this month its first green hydrogen hub, with an estimated $21.6 billion investment planned to develop 20 GW of renewable energy projects and produce 1,500 tons per day of green hydrogen and 7,500 TPD of green hydrogen derivatives such as green methanol, green urea and sustainable aviation fuel.

The hub, set to be developed in Andhra Pradesh state, is being led by NTPC Green Energy Ltd., a subsidiary of national government owned power company NTPC Ltd. in collaboration with the state-owned energy company. NTPC is looking to support the hub with India’s first dedicated transmission network, said Prime Minister Narendra Modi on Jan 8. 

The hub, seen as a key move toward achieving India’s stated goal of 500 GW of non-fossil energy capacity by 2030, also is expected to spur about $2.15 billion in related investment in Andhra Pradesh, he said. Another hub also is set in Rajasthan state to generate 25 GW of renewables under a federal-state agreement, with more details to be announced soon, including release of about $46 million in government funds for the hub facilities. 

The first hub is set to be completed in 2027, with most of the second one finished by 2032. The latter will include expansion of production facilities and construction of chemical storage terminals, port infrastructure, 7-GW substation and 80 million liter per day desalination plant.

For the first hub, the national energy company is leasing 1,200 acres from the state-owned Andhra Pradesh Industrial Infrastructure Corp. to build facilities for green hydrogen electrolyzers and fuel cell manufacturing, related ancillary industries, incubation, testing and export, including derivatives such as green ammonia and green methanol. The hub location near Visakhapatnam port will be an added benefit, officials said.

ENR has learned that a bid for project management has been released. The national power company green unit also has issued a global tender seeking bids from manufacturing companies to develop the production complex in the industrial park in Pudimadaka to include equipment and technology related to green hydrogen and derivatives. Further details are not known. 

With solar power a crucial component of the hydrogen hub, bids for related projects have been released, including dedicated solar zone transmission lines. Major contracts have yet to be awarded, but Indian and global firms are expected to bid to for involvement in renewable energy technology, green hydrogen production and sustainable manufacturing processes as well as environmental consulting. 

Toyo Engineering Corp. is believed to be in talks with the national government for offtake of green hydrogen produced at the hubs, with industrial firms South Korea-based Korea Hydro & Nuclear Power and France’s Air Liquide possible partners on green hydrogen projects to import derivatives. 

Investors such as the Canada federal Pension Plan Investment Board, Malaysia conglomerate Petronas and publicly-traded investment firm Brookfield are showing interest in India’s green energy sector.