NTPC is in talks with buyers in Japan, South Korea, and Germany to export green ammonia from its planned hub in Andhra Pradesh.
Chairman Gurdeep Singh shared the update on Tuesday at an event organised by the Indian Chamber of Commerce, according to Reuters.
Green ammonia is a fuel and fertiliser ingredient made from hydrogen that renewable power has produced. Green methanol is a similar fuel.
The report says both are seen as more practical than hydrogen itself for transport and international trade.
‘We have to make hydrogen a business,’ Singh said. He added that the focus is shifting from pilot projects to ventures that can pay their own way.
Sources calls the hub a proposed project. NTPC Green Energy is developing it at Pudimadaka, near Visakhapatnam.
The site covers over 1,200 acres, according to the NTPC Renewable Energy website.
Once fully running, the hub will use 7 GW of renewable energy and export more than 2.5 million tons of green chemicals a year, the website says.
Developers around the world have struggled to sign long-term offtake agreements.
An offtake agreement is a contract in which a buyer promises to take the output over many years. Large projects need that promise before the money follows.
Talks are not deals, though. No buyer, volume or price has been named, and no contract has been announced.
The government is pushing the sector. New Delhi has backed it with subsidies of roughly $2.1 billion and aims to produce 5 million metric tons of green hydrogen a year by 2030.
The report says demand for green fuels is expected to rise as industries look for alternatives to fossil fuels to cut emissions and meet climate targets.
The next thing to watch is whether any of these talks end in signed contracts.
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