EIB to support green hydrogen in India with EUR 1 billion loan

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European Investment Bank, the bank of the European Union, has joined the India Hydrogen Alliance (IH2A)— an industry coalition of global and Indian companies committed to creating a hydrogen value chain and economy in India. It also agreed to increase support for large-scale green hydrogen hubs and projects across India with indicative funding of EUR 1 billion. The funding will be subject to the Indian government and EIB approvals.

The EIB is currently exploring a credit facility with the Indian government to provide investments to critical public sectors supporting the development of the green hydrogen industry. This facility would support the government’s efforts to commercialize upcoming green hydrogen technologies and accelerate cost reduction with continued investments in innovation, R&D, green hydrogen hubs, and pilot projects.

“The European Investment Bank recognizes 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 decarbonize energy, industry, and transport,” said Kris Peeters, vice president of the European Investment Bank. “The strengthened cooperation through the India Hydrogen Alliance will contribute to implementing a national green hydrogen roadmap that delivers India’s energy transition and net-zero carbon plans alongside strengthening energy security in the years ahead.”

Jillian Evanko, president and CEO of Chart Industries and Founding Member, IH2A, said, “Funding for large-scale green hydrogen projects is nascent and EIB’s participation will help solve a key eco-system problem. We look forward to working closely with EIB, investors, industry, and the government to help realize hydrogen commercialization at scale, in the next half-decade.”

The European Investment Bank is the world’s largest international public bank and leading financier of renewable energy and climate action around the world. The new memorandum of understanding with IH2A will enable the EIB to further support clean energy investment and back the development of green hydrogen in India.

IH2A is focusing on attracting global climate finance for the development of large-scale hydrogen hub development in India, working with the Government of India, state governments, global hydrogen players, and Indian companies. This memorandum of understanding follows the Government of India’s confirmation of a $2 billion public finance allocation for the National Green Hydrogen Mission and will support IH2A in bringing together global climate finance players and funding agencies, to work with industry players and government agencies to plan and execute large-scale green hydrogen projects and develop the green hydrogen economy in India.

The EIB is financing green hydrogen investment in Europe and working closely with partners across Africa, Latin America, and Asia to accelerate large-scale green hydrogen investment.

 

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