The green energy arm of India’s state-run power producer NTPC Ltd (BOM:532555) has sealed a Memorandum of Understanding (MoU) for a large green hydrogen project in Maharashtra supported by gigawatts of new renewable energy generation and storage.

The pact with the Indian state’s government is part of Maharashtra’s green investment plan for the next five years, NTPC said in a recent statement. Its proposal represents a potential investment of about INR 800 billion (USD 9.65bn/EUR 8.87bn).

The plan calls for NTPC Green Energy Limited to develop up to 5 GW of renewables, either with or without a battery storage component, plus pumped hydro storage totalling 2 GW. In turn, the annual production capacity of the green hydrogen plant will be up to one million tonnes.

The proposal is aligned with NTPC’s strategy for 60 GW of renewables by 2032. Its unit NTPC Green currently has over 3.4 GW of installed renewables in its fleet and 26 GW of projects in the pipeline, including 7 GW under implementation.