Andhra Pradesh requires $10-15 billion to achieve green hydrogen capacity of 500 ktpa by 2030 


The Indian state of Andhra Pradesh may require a total investment of $10-15 billion to achieve its targeted green hydrogen production capacity of at least 500 kilo-tonnes per annum (ktpa) by 2030, according to a white paper released by the New & Renewable Energy Development Corporation Of A.P. Ltd (NREDCAP).

With a green hydrogen production target of 500 ktpa, the state requires 10-15 GW of RE capacity dedicated to green hydrogen production and 4-5 GW of electrolyzer capacity. 

The report states that out of the estimated investment of $10-15 billion required to enable a 500 ktpa green hydrogen target, around 70% will be necessary for creating the RE infrastructure with a balance for electrolyzer capacity additions.

Andhra Pradesh, one of India’s leading industrial states, emitted 169 metric tons of carbon dioxide equivalent (MTCO2e) in 2018, a 6.5% share of India’s emissions. With a current hydrogen demand of 400 ktpa, the state can reduce 4-4.5 mtpa of CO2 with a 100% shift to green hydrogen, states the whitepaper.

Andhra Pradesh is well poised to leverage this opportunity. Under Andhra Pradesh Green Hydrogen and Green Ammonia Policy 2023, the state targets a green hydrogen production capacity of at least 500 ktpa or green ammonia production capacity of up to 2 mtpa in the next five years by harnessing its RE potential.

A swift shift to green hydrogen requires massive capital investments for developing renewable energy infrastructure such as solar and wind power generation plants, green hydrogen production plants, and equipment manufacturing for electrolyzers, solar panels, wind turbines, and other ancillaries.

Andhra Pradesh has an installed RE capacity of around 9 GW. It has an immense RE potential of 82.5 GW (38 GW solar and 44 GW wind) with 5 lakh acres of potential land parcels for RE generation. Further, 34 GW of pumped hydro potential can be leveraged for a round-the-clock supply of RE to operate electrolyzers efficiently and produce uninterrupted green hydrogen. As electricity accounts for 75-80% of the green hydrogen cost, the availability of low-cost RE is a distinguishing factor in the state.

The report states Andhra Pradesh is well placed for the export of green hydrogen, owing to its long coastlines and ports.

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