The European Investment Bank (EIB), a subsidiary of the European Union (EU Bank), has entered into a Memorandum of Understanding (MoU) with the India Hydrogen Alliance (IH2A) to extend a loan of approximately €1 billion towards the development of large-scale green hydrogen hubs in India.
This funding is contingent upon approval from both the EIB and the Indian government. Additionally, EIB has agreed to join IH2A, which is expected to bring industry players, investors, and government organizations together to support the growth of green hydrogen hubs and related projects. The MoU follows India’s allocation of $2 billion in public funds for the National Green Hydrogen Mission, which was approved by the Union Cabinet earlier this year with an initial investment of ₹197.4 billion.
The Indian government has launched the “Green Hydrogen Policy” in pursuit of its goal of producing 5 million tons of clean fuel by 2030. The European Investment Bank (EIB) is actively collaborating with the Indian government to provide funding through a proposed credit facility. This investment would support the development of the green hydrogen industry, including the commercialization of innovative technologies and ongoing investment in research and development, green hydrogen hubs, and pilot projects. The EIB is also financing green hydrogen projects in Europe and partnering with organizations in Africa, Latin America, and Asia to drive large-scale green hydrogen investment.
Kris Peeters, the Vice President of the European Investment Bank, stated that the EIB recognizes the enormous potential for developing and reducing the cost of green hydrogen in India. Through its collaboration with the India Hydrogen Alliance (IH2A), a coalition of global and Indian companies working towards a hydrogen economy in India, the EIB aims to support the implementation of India’s national green hydrogen roadmap.
This will contribute to India’s energy transition and net-zero carbon goals while strengthening energy security in the long term. The IH2A works with private sector partners, the government, and other stakeholders to bring down the cost of hydrogen production, establish a local supply chain for hydrogen and related technologies, and help India achieve its carbon-free ambitions.
Jillian Evanko, the President and CEO of Chart Industries and a founding member of the India Hydrogen Alliance (IH2A), stated that funding for large-scale green hydrogen projects is limited and EIB’s participation will play a crucial role in addressing this challenge.
This step is critical in laying the foundation for a successful hydrogen transition before looking ahead to the year 2030. H.E. Ugo Astuto, the EU Ambassador to India, added that the European Investment Bank’s involvement in the IH2A underscores the collaborative approach of Team Europe in pursuit of a green and resilient future, in line with the EU’s Global Gateway strategy.
Source: Mercom
