Andhra Pradesh is aiming to achieve 1 million metric tonnes (MMT) of green hydrogen production annually by 2030, a move that will require significant investment and infrastructure development. Union Minister of State for Communications and Rural Development, Pemmasani Chandra Shekhar, shared this vision during an event in Amaravati, encouraging private players to take advantage of the state’s investor-friendly policies.
This goal aligns with the broader National Green Hydrogen Mission, approved by the Union Cabinet in January 2023, which outlines a national target of producing 5 MMT of green hydrogen per year by 2030. The mission carries a total allocation of ₹19,744 crore to support this clean energy transition.
“Andhra Pradesh is positioning itself as a central hub for India’s green hydrogen sector, aiming to contribute 20% of the country’s total production target,” said Mr Shekhar. One of the key developments includes NTPC Green Energy Ltd (NGEL) planning a large-scale green hydrogen project at Pudimadaka in Visakhapatnam. This facility is expected to produce 1,500 tonnes of green hydrogen per day, along with 7,500 tonnes per day of derivatives such as green ammonia, methanol, and sustainable aviation fuel.
The total investment across the state’s green hydrogen ecosystem is projected to reach ₹1.85 lakh crore. Another major company, Hero Future Energies, is exploring plans to establish a green hydrogen facility in Tirupati. The minister noted that Andhra Pradesh’s extensive port infrastructure enhances its position as an export-ready clean energy destination, signaling both scalability and profitability to global investors.
While the growth potential is substantial, Mr Shekhar highlighted several challenges that need to be addressed for the green hydrogen sector to scale sustainably. Green hydrogen holds great promise for clean energy, but its widespread adoption is currently hindered by high production costs. At present, green hydrogen is priced between USD 3 to 6 per kilogram, significantly more expensive than grey hydrogen, which costs around USD 1 to 2 per kilogram. Bridging this gap requires advancements in technology, particularly through the development of more efficient electrolysers and the scaling up of renewable energy sources to power the production process at lower costs.
Another major concern is the substantial water requirement for green hydrogen production. Creating just one kilogram of hydrogen through electrolysis consumes approximately 9 liters of freshwater. This poses a significant challenge, especially for countries like India, where water demand is expected to exceed supply in the coming years. To make green hydrogen a sustainable option, there is an urgent need to explore alternative solutions, such as seawater electrolysis or water recycling technologies.
Infrastructure remains a critical barrier in building a robust green hydrogen economy. The current lack of dedicated pipelines, safe storage facilities, and refueling stations limits the ability to transport and distribute hydrogen efficiently. These logistical gaps make it difficult for green hydrogen to reach end-users at scale and must be addressed through coordinated investments and planning.
Overcoming these challenges will require a combined effort from governments, industry players, and research institutions. Strategic policy support, public-private partnerships, and innovation in production and distribution technologies are essential to make green hydrogen cost-competitive, sustainable, and accessible. With the right infrastructure and resources in place, green hydrogen can play a transformative role in the global shift to clean energy.
Despite these hurdles, the state is pressing forward with integrated plans and incentives. Mr Shekhar urged domestic and international investors to participate in Andhra Pradesh’s full value chain — from electrolyser manufacturing to derivative fuel production. He emphasized the importance of the state’s proposed Integrated Clean Energy (ICE) Policy 2024, which includes tax incentives, subsidies, and other supportive measures to accelerate green hydrogen adoption.
“Andhra Pradesh is not only setting ambitious targets but also laying the groundwork to meet them. This is an opportunity for industry leaders to join a forward-looking, sustainable energy transformation,” he concluded.
