NTPC arm in talks with HPCL, Hindalco for green hydrogen supply joint ventures

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₹1,660.15 crore in the JV. “NGEL has a tie-up with IOCL. It is also taking to HPCL and Hindalco, among a few others.

The plan is to cater to the captive requirement of these companies including refineries," one of the two persons mentioned above said. Queries sent to NTPC, HPCL and Hindalco remained unanswered till press time. NGEL's keenness on JVs gains significance as it helps assured offtake for renewable energy and green hydrogen by the JV partner for captive consumption.

Assured offtake is key for green hydrogen producers as it is a highly capital-intensive commodity. “The cost of green hydrogen production is about $3.7-5.3 per kg and that of electrolyzers, which is used for producing green hydrogen, is $450-$550 per kilowatt," said Prashant Vasisht, senior vice president and co-group head, corporate ratings, ICRA. "The Centre is eyeing to bring it (green hydrogen production cost) below $1 to make it more viable." Green hydrogen is produced with the help of renewable energy, and refineries and manufacturing of steel and metals like aluminium are key areas where it can be used.

Further, with the focus on India's net-zero target by 2070 and specific targets of the companies themselves, there is a major focus on adoption of green hydrogen in industries in place of grey hydrogen, which uses polluting inputs such as natural gas or methane. India produces and consumes about 6 million tonnes of hydrogen currently, most of which is grey hydrogen. IOCL aims to achieve net-zero by 2046, and Hindalco, an Aditya Birla Group company, by 2050.