NTPC signs MoU with Maire Tecnimont to produce green methanol

NTPC Ltd has entered into an agreement with the Indian subsidiary of the leading engineering & construction provider Maire Tecnimont Group, Italy to create a commercial scale green methanol production facility in India.

The state-owned giant has signed a non-binding Memorandum of Understanding with Tecnimont Private Limited to jointly evaluate and explore the possibility of developing a commercial scale Green Methanol Production facility at an NTPC project in the country, it said in a statement to the stock exchanges.

As per the terms of the project, carbon from the power plants of NTPC will be captured and converted into green fuel.

To explain further, green methanol has many applications, including serving as a base material for the chemical industry and storing renewable electricity. It is even used as a transportation fuel and considered a substitute fuel for maritime fuel applications, stated NTPC’s filing.

India aims to sell 70% of the production to countries such as South Korea, Japan and in the European Union, an industry official said, adding that derivatives, including green ammonia, had an equally strong demand.

The government is estimating global demand for green hydrogen will exceed 100 million tonnes by 2030, from just under 75 million tonnes now, according to other industry sources.

In February the government announced plans for India to make 5 million tonnes of green hydrogen annually by 2030, a figure that the first government official said could be doubled, depending on international demand.

The government also plans for the country to achieve electrolyser manufacturing capacity of 15 gigawatts in phases by 2030. That would be almost 10 times current global capacity.

U.S.-based Ohmium International has commissioned India’s first green-hydrogen factory in Bengaluru. Reliance Industries, Larsen & Toubro, Greenko and H2e Power last year announced plans to build gigawatt-scale factories.

Indian oil refineries and fertiliser and steel plants annually use 5 million tonnes of hydrogen made from natural gas, called grey hydrogen. The process produces carbon dioxide.

Higher gas prices have pushed the Indian grey hydrogen price to around 200 rupees per kg from 130 rupees a year ago.