According to a white paper released by the New & Renewable Energy Development Corporation Of A.P. Ltd (NREDCAP), the Indian state of Andhra Pradesh is setting its sights on a monumental goal – the production of at least 500 kilo-tonnes per annum (ktpa) of green hydrogen by 2030.
However, achieving this visionary target comes with a hefty price tag, requiring a total investment of $10-15 billion. Let’s dive into the details of this groundbreaking endeavor, which holds the promise of not only transforming Andhra Pradesh but also pioneering India’s renewable energy transition.
At the heart of Andhra Pradesh’s green hydrogen revolution lies an ambitious target – the production of 500 ktpa of green hydrogen by 2030. To fuel this endeavor, the state must marshal a staggering 10-15 GW of renewable energy (RE) capacity dedicated exclusively to green hydrogen production and a further 4-5 GW of electrolyzer capacity. The sheer scale of this undertaking underscores its significance in the state’s journey towards sustainability.
The road to a 500 ktpa green hydrogen capacity is paved with substantial investments. Of the estimated $10-15 billion required for this monumental shift, a significant 70% is earmarked for creating the RE infrastructure. This includes the development of solar and wind power generation plants, green hydrogen production facilities, and the manufacturing of essential equipment like electrolyzers, solar panels, and wind turbines. Such investments are the lifeblood of this green hydrogen revolution.
Reducing Emissions and Meeting Hydrogen Demand
In 2018, Andhra Pradesh emitted 169 metric tons of carbon dioxide equivalent (MTCO2e), constituting 6.5% of India’s emissions. With a current hydrogen demand of 400 ktpa, the state has the potential to slash 4-4.5 million tons of CO2 annually through a complete shift to green hydrogen. This monumental reduction in emissions underscores the environmental significance of this endeavor.
Andhra Pradesh is uniquely positioned to leverage this opportunity. With an existing RE capacity of approximately 9 GW and a staggering RE potential of 82.5 GW, including 38 GW of solar and 44 GW of wind, the state boasts vast land parcels capable of generating renewable energy. Moreover, it can tap into 34 GW of pumped hydro potential to ensure a continuous supply of RE for efficient electrolyzer operation. With electricity accounting for 75-80% of the green hydrogen cost, low-cost RE is a game-changer for Andhra Pradesh.
As the world seeks sustainable energy solutions, Andhra Pradesh’s green hydrogen aspirations extend beyond its borders. The state’s extensive coastline and ports offer a strategic advantage for green hydrogen export. With the world increasingly turning to green hydrogen as a clean energy source, Andhra Pradesh’s ports could become hubs of global significance.
