NTPC Green and Honeywell to fuel India’s aviation sector with green energy innovation

How is NTPC Green Energy driving sustainable aviation fuel innovation?

NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, has signed a pivotal Memorandum of Understanding (MoU) with Honeywell UOP India Private Limited to spearhead the production of sustainable aviation fuel (SAF) in India. The agreement, exchanged on 25 April 2025 between D M R Panda, Executive Director (Hydrogen) of NTPC, and Ranjit Kulkarni, Vice President and General Manager (ESS) of Honeywell UOP, signals a major step forward in decarbonizing the aviation sector.

The collaboration aims to leverage Honeywell’s proprietary eFining technology, utilising carbon dioxide emissions captured from NTPC’s power plants combined with green hydrogen, to create SAF at scale. This initiative marks a significant advancement in NTPC Green Energy‘s pursuit of integrated renewable energy solutions tailored for the evolving needs of India’s clean energy economy.

Why is the NTPC Green-Honeywell collaboration significant for India’s Green Hydrogen Hub?

The partnership plays a foundational role in the success of NTPC’s ambitious Green Hydrogen Hub project at Pudimadaka, Andhra Pradesh. Covering approximately 1,200 acres, the Hub is designed as a comprehensive platform for green chemicals production, sustainable manufacturing, and large-scale green hydrogen development.

Sustainable aviation fuel production, anchored by Honeywell UOP’s technical expertise, will form a critical pillar within this ecosystem. According to NTPC Green Energy’s strategic plan, the SAF facility will complement ongoing green hydrogen initiatives and contribute meaningfully toward achieving commercial viability for India’s hydrogen economy. This positions the Pudimadaka Hub as one of India’s most significant projects supporting the country’s transition towards a greener and self-reliant energy future.

The SAF venture also supports NTPC’s broader vision of attaining a 60-gigawatt renewable energy portfolio by 2032, reinforcing its long-term commitment to driving India’s clean energy leadership on the global stage.

What technologies will be used in the NTPC Green and Honeywell UOP partnership?

Central to the collaboration is Honeywell’s advanced eFining technology, known for its ability to efficiently produce high-quality sustainable aviation fuel from captured carbon dioxide and green hydrogen feedstocks. This technological integration not only reduces carbon emissions but also creates value by converting waste gases into critical, low-carbon fuel alternatives.

Honeywell’s eFining process stands out for its flexibility, scalability, and adaptability across various feedstock types, making it ideal for India’s complex energy environment. The application of such cutting-edge technology at NTPC’s Pudimadaka Green Hydrogen Hub reflects a strategic, forward-looking approach to building integrated renewable energy ecosystems.

Industry observers believe that the move aligns with India’s broader objectives under the National Green Hydrogen Mission and sustainable transportation initiatives like SATAT, placing NTPC Green Energy at the heart of the nation’s green fuel revolution.

How does this MoU fit into NTPC Green Energy’s broader sustainability vision?

The collaboration with Honeywell UOP is aligned with NTPC Green Energy Limited’s comprehensive strategy to diversify and strengthen its clean energy portfolio. Established to advance NTPC’s renewable initiatives, NTPC Green Energy is currently driving projects in solar, wind, battery storage, green hydrogen, and now, sustainable aviation fuels.

Sustainable aviation fuel is rapidly emerging as a critical enabler of the global energy transition, with airlines worldwide seeking lower-emission alternatives to traditional jet fuel. NTPC’s early foray into this space, through a partnership with a global technology leader like Honeywell, could give it a strong competitive advantage as SAF demand accelerates in the coming years.

By integrating SAF production into its operations, NTPC Green Energy not only future-proofs its business but also reinforces its commitment to India’s 2070 net-zero goals and global climate leadership ambitions.

What impact could this partnership have on India’s aviation sector?

The aviation industry remains one of the hardest sectors to decarbonize due to its reliance on fossil fuels and limited availability of viable alternatives. By enabling large-scale, domestic SAF production, the NTPC-Honeywell partnership could significantly alter this dynamic for India.

Analysts highlight that the collaboration could enable Indian airlines to meet stringent carbon emission regulations, both domestically and internationally, without depending heavily on expensive SAF imports. It could also provide cost efficiencies, support indigenous fuel development, and enhance India’s energy security.

Moreover, with the International Civil Aviation Organization (ICAO) and other bodies tightening emission norms, Indian aviation players that adopt SAF early are likely to gain significant regulatory and competitive advantages.

Expert Insights: Why does the NTPC-Honeywell partnership matter for global energy transitions?

Energy sector experts believe that collaborations blending carbon capture, green hydrogen, and clean fuels are the future of decarbonization. By combining NTPC’s infrastructure prowess with Honeywell UOP’s innovation in fuel technologies, this MoU represents a model for how global and domestic players can partner to drive systemic, sector-wide energy transitions.

The NTPC-Honeywell alliance showcases how cross-sector collaborations can break traditional industry silos, fostering innovation that is critical to meeting the world’s ambitious net-zero targets.

Sentiment Analysis: What does the market think about NTPC Green Energy’s latest move?

Following the announcement of the MoU, the market response towards NTPC Limited has been broadly positive, albeit cautiously optimistic. As NTPC Green Energy Limited is a subsidiary, its achievements are closely tied to NTPC’s broader performance.

As of 25 April 2025, NTPC Limited’s stock closed at ₹356.30, registering a 1.86% decline on the day, placing it about 20.5% below its 52-week high of ₹448.30. Analysts attribute this marginal softness more to broader market volatility rather than company-specific developments.

Institutional ownership patterns reveal interesting dynamics. Foreign Institutional Investors (FIIs) marginally reduced their holdings in NTPC from 18.2% to 17.8% during the March 2025 quarter. In contrast, Domestic Institutional Investors (DIIs) increased their share from 26.9% to 27.3%, reflecting growing confidence among domestic institutions in NTPC’s long-term strategy, particularly around renewables.

From a technical perspective, NTPC’s stock is currently trading below key moving averages, with the 20-day simple moving average (SMA) at ₹345.63 and the 50-day SMA at ₹328.00. The Relative Strength Index (RSI) indicates neutral momentum, while the Moving Average Convergence Divergence (MACD) suggests a potential bearish crossover, prompting analysts to recommend cautious short-term positioning.

Short-term investment sentiment suggests a ‘Hold’ strategy, with investors advised to wait for clearer technical signals before making aggressive moves. However, medium- to long-term sentiment remains bullish. Analysts believe that NTPC’s strategic thrust into green hydrogen, renewable energy, and sustainable aviation fuel positions it well for future growth, and advise long-term investors to consider accumulating on dips.

Experts suggest that NTPC’s success in scaling up its Green Hydrogen Hub and SAF projects could trigger positive re-ratings, making it a compelling green energy play within India’s large-cap space.