The European Investment Bank (EIB), the bank of the European Union, has agreed to join the India Hydrogen Alliance (IH2A) with a commitment of €1 billion in funding. This agreement is subject to the approval of both the Indian government and the EIB.
Support for Green Hydrogen Projects
The European Investment Bank is the largest international public bank in the world and the leading financer of renewable energy and climate action initiatives. The new agreement with IH2A will allow the EIB to increase its support for clean energy investments and the development of green hydrogen in India.
National Hydrogen Mission
IH2A is focused on attracting global climate finance for the development of large-scale hydrogen hubs in India. The memorandum of understanding between IH2A and the EIB supports the Indian government’s allocation of $2 billion in public finance for the National Hydrogen Mission. This will help bring together funding agencies, industry players, and government agencies to plan and execute large-scale green hydrogen projects and grow the green hydrogen economy in India.
Credit Facility for Green Hydrogen Development
The EIB is currently exploring the possibility of establishing a credit facility with the Indian government to support the development of the green hydrogen industry in key public sectors. This facility would help the Indian government commercialize upcoming green hydrogen technologies, reduce costs through innovation, and support long-term investment in R&D, green hydrogen hubs, and pilot projects.
Global Support for Green Hydrogen Investment
The EIB has a history of financing green hydrogen investment in Europe and works closely with partners in Africa, Latin America, and Asia to accelerate large-scale green hydrogen investment. This project, supporting climate action, is part of the EU’s Global Gateway initiative, which supports projects that improve global and regional connectivity in the digital, climate, transport, health, energy, and education sectors.
EIB Vice-President Kris Peeters said “The European Investment Bank recognises the huge potential of developing and reducing the cost of green hydrogen in India. Together with industry, national government and state authorities we are exploring how the EU bank might play a role in supporting India’s National Hydrogen Mission to enable the use of green hydrogen to decarbonise energy, industry and transport. Increased cooperation through the India Hydrogen Alliance will help to implement a national green hydrogen roadmap that delivers India’s energy transition and net-zero carbon plans while strengthening energy security in the years ahead. Joining IH2A builds on the EIB’s global climate engagement and support for climate action in India over the last three decades.”
Jillian Evanko, President and CEO of Chart Industries and Founding Member of IH2A, said “We are delighted to partner with the EIB to bring much needed funding to help develop the green hydrogen economy in India. Funding for large-scale green hydrogen projects is nascent and the EIB’s participation will help solve a key ecosystem problem. We look forward to working closely with the EIB, investors, industry and the government to help commercialise hydrogen at scale over the next half decade. This is essential to getting the first few steps of the hydrogen transition right, before we look at 2030 scenarios.”