NTPC RE Ltd (NREL) and Gujarat Alkalies and Chemicals Ltd (GACL), part of state-owned power giant NTPC, have signed a partnership agreement to collaborate on the development of renewable energy and the synthesis of green chemicals.

“To achieve the goals of green energy and green hydrogen and the efforts of the Government of India to achieve a carbon-neutral economy, NTPC RE Limited (NREL) and Gujarat Alkalies and Chemicals Limited (GACL) signed MoU July 6, 2022, in New Delhi,” the company statement said.

According to the statement, the MoU was signed by GACL MD Harshad R Patel and NREL CEO Mohit Bhargava. The MoU envisages cooperation in renewable energy, green methanol and green ammonia to jointly explore the provision of 100 MW RE-RTC (Round the Clock) power to synthesise 75 TPD green methanol and 35 TPD green ammonia gas. Various chemicals are produced at the Vadodara and Dahej factories in Gujarat.

NREL is a 100% subsidiary of NTPC and was incorporated in October 2020 to manage NTPC’s renewable energy business. The development comes against the backdrop of NTPC announcing its green hydrogen plan. It plans to build the country’s first pilot project to synthesise green methanol, build green hydrogen refuelling stations, and incorporate green hydrogen into PNG and green energy storage projects.

It will be the country’s first commercial-scale green ammonia and green methanol project, in line with Prime Minister Narendra Modi‘s vision for Atmanirbhar Bharat. NTPC is India’s largest power company, with power generation as its core business, with a total installed capacity of 69 GW (including joint ventures and subsidiaries).

To increase the renewable energy portfolio, a wholly-owned subsidiary “NTPC Renewable Energy Ltd” (NREL), was established on October 7, 2020, to be responsible for renewable energy parks and projects, including green hydrogen business and energy storage technology and round-the-clock Renewable energy.

GAC Group was established in March 1973 as a state-owned chemical enterprise. GACL is one of the country’s largest producers of caustic soda, with a production capacity of more than 1,400 TPD at its two plants in Dahej and Vadodara.