Power Sector Giant Joins Hands for Green Hydrogen Push – A Game Changer?
Major MoU Signed to Boost Green Hydrogen Development
NTPC Green Energy Limited (NGEL) has signed a Memorandum of Understanding (MoU) with Bharat Light and Power Private Limited (BLP) to strengthen green energy initiatives. The agreement was signed on February 19, 2025, at SCOPE Complex, New Delhi, in the presence of senior officials from both companies.
Focus on Green Hydrogen and Carbon Capture
The MoU aims to explore the off-take of green hydrogen and its derivatives by third parties. Additionally, NGEL will focus on selling captured carbon and biogenic carbon, contributing to India's net-zero goals. The company, through its affiliates, will establish the necessary infrastructure for the green hydrogen project, including renewable energy projects.
Company Overview and Business Model
Incorporated in April 2022, NTPC Green Energy Limited is a renewable energy subsidiary of NTPC Limited. The company focuses on the development, construction, and operation of renewable energy projects, primarily in solar and wind energy. It secures long-term Power Purchase Agreements (PPAs) for stable cash flows.
Current Renewable Energy Portfolio
NGEL has a total renewable energy capacity of 26,071 MW, with 3,320 MW already operational. The company has awarded contracts for 13,576 MW and has a development pipeline of 9,175 MW. Rajasthan contributes 62.2 per cent of its operational capacity.
Strategic Focus and Challenges
NGEL is expanding into green hydrogen, green chemicals, and battery energy storage. However, challenges include delays in land transfers for wind projects. The company also has a high debt burden, with total borrowings of Rs 17,057 crore as of H1FY25. Plans are in place to use Rs 7,000 crore from IPO proceeds to reduce debt.
Revenue Sources and Future Plans
Solar energy contributes 91 per cent of NGEL’s revenue, followed by wind energy at 4.5 per cent. The company plans to expand its renewable energy footprint while focusing on sustainable energy solutions for the future.
Disclaimer: The article is for informational purposes only and not investment advice.