Andhra Pradesh needs $10–15 billion to reach 500 ktpa of green hydrogen by 2030

Andhra Pradesh needs $10–15 billion to reach 500 ktpa of green hydrogen by 2030

A report from the New & Renewable Energy Development Corporation Of A.P. Ltd says that Andhra Pradesh, a state in India, might have to spend $10–15 billion in total to make enough clean hydrogen (called green hydrogen) by 2030. They want to produce at least 500 thousand tons per year.

The state needs 4-5 GW of electrolyzer capacity and 10-15 GW of RE capacity to produce the 500 ktpa of green hydrogen that is the state’s goal.

According to the paper, approximately 70% of the anticipated $10–15 billion investment needed to achieve a 500 ktpa green hydrogen objective will go into building the RE infrastructure, with the remaining funds going toward increasing electrolyzer capacity.

One of the most industrialized states in India, Andhra Pradesh, contributed 6.5% of the nation’s emissions in 2018 with 169 metric tons of carbon dioxide equivalent (MTCO2e) emissions. According to the whitepaper, the state can cut 4-4.5 mtpa of CO2 with a 100% switch to green hydrogen and a current hydrogen consumption of 400 ktpa.

Andhra Pradesh is ideally positioned to take advantage of this chance. A minimum green hydrogen production capacity of 500 ktpa or a maximum green ammonia production capacity of 2 mtpa is the state’s goal for the next five years under the Andhra Pradesh Green Hydrogen and Green Ammonia Policy 2023.

Rapid adoption of green hydrogen necessitates significant capital expenditures for the construction of renewable energy infrastructure, including facilities for the production of green hydrogen, solar and wind power plants, electrolyzers, solar panels, wind turbines, and other ancillaries.

Over 9 GW of installed RE capacity is present in Andhra Pradesh. It has a huge potential for renewable energy, with 82.5 GW (38 GW solar and 44 GW wind) and 5 lakh acres of potential land parcels. Additionally, the 34 GW of pumped hydro potential can be used to provide a continuous stream of RE that will operate electrolyzers effectively and continuously produce green hydrogen. Since energy makes up between 75 and 80 percent of the cost of green hydrogen, the state’s accessibility to affordable RE sets it apart.

Because of its extensive coastline and ports, the paper claims that Andhra Pradesh is well situated for the export of green hydrogen.