India's NTPC Green Energy has signed a memorandum of understanding with Honeywell UOP to explore the production of sustainable aviation fuel using captured carbon dioxide from power plants and renewable hydrogen, the power generator said June 3.

The project will be part of NTPC Green's planned Green Hydrogen Hub in Pudimadaka, Andhra Pradesh, which spans approximately 1,200 acres and is designed as an integrated facility for renewable chemicals and sustainable manufacturing.

"This collaboration combines Honeywell UOP's expertise in SAF production with NTPC's endeavors in developing green hydrogen projects," NTPC Green said.

The agreement aims to conduct a feasibility study for SAF production using Honeywell's proprietary eFining technology, combining CO2 emissions captured from NTPC's power plants with renewable hydrogen, the company said without providing any estimates of SAF production.

The initiative supports NTPC's broader goal of achieving a 60 GW renewable energy portfolio by 2032, from around 4.78 GW now, comprising renewable energy projects commissioned and under development.

The Pudimadaka hub, a significant renewable hydrogen project in Andhra Pradesh state, plans to produce hydrogen derivatives for the export and domestic markets, NTPC Green had said in January.

The partnership will seek opportunities in the aviation sector, where significant steps are expected to be taken toward decarbonization with the help of lower-carbon alternatives to conventional jet fuel, NTPC Green said.

SAF is crucial for reducing aviation emissions, as the sector faces challenges in electrification due to battery weight limitations for long-haul flights, NTPC Green said.

India's National Biofuels Coordination Committee has set a target to blend 1% of sustainable aviation fuel with jet fuel in 2027 and 2% in 2028, the government said in 2023.

NTPC Green is a unit of NTPC, the largest power generator in India with a 77 GW, mostly thermal capacity. It aims to undertake projects through organic and inorganic routes to fulfill the company's renewable energy objectives, its website said.

Platts, part of Commodity Insights, assessed Saudi Arabia hydrogen produced via alkaline electrolysis (including capital expenditures) at $4.09/kg on June 2, up marginally from a month ago.

Platts assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $4.52/kg on June 2, down 12% month over month.