ALMM, RLMM Exemption for Green Hydrogen Announced

MNRE Issues Clarification On ALMM Implementation Timeline

In an announcement that was widely speculated about, the Ministry of New and Renewable Energy has issued an office memorandum dated May 27, that exempts solar plants , and wind energy from ALMM( Approved list of models and manufacturers) and RLMM ( Revised list of Models and manufacturers)  requirements respectively if they are dedicated for green hydrogen production. A key requirement is their location in Special Economic Zones (SPZ) or set up as an Export oriented Unit for Green Hydrogen and its derivatives. Both these lists are widely seen as strong non-tariff barriers to foreign competition for Indian manufacturers, particularly ALMM.

The move was expected simply because the biggest challenge with Green Hydrogen viability is cost, and every effort is expected to be made to ensure that the target of 5 million metric tonnes production annually is met at a cost that is viable by 2030. That also explains why the exemption is valid for all plants set up till December 2030.

The move is not insignificant in its impact, as potentially 25 GW plus of solar and wind capacities could be needed to ensure the producution of 5 million tonnes per annum of green hydrogen, going by existing electrolyser efficiencies and power consumption.  Some of India’s largest corporates ranging from the Reliance group to Adani and the oil and gas majors have committed to a serious push in the space, with the ultimate objective of bringing down green hydrogen costs to 1 USD by 2030. It is an ambitious target that will need much to go its way to happen, and the exemptions we suspect, are just the first of some key support measures that will follow as momentum picks up.

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