India: EIB backs green hydrogen deployment and joins India Hydrogen Alliance

• EIB and India Hydrogen Alliance to bring industry, investors and government agencies together on green hydrogen hubs and projects
• Indicative funding of €1 billion for large-scale projects in the public sector
• EIB working with the Indian government on a credit facility to provide critical public-sector investments supporting the development of the green hydrogen industry

Today in Mumbai Kris Peeters, Vice-President of the European Investment Bank (EIB), the bank of the European Union, formally agreed to join the India Hydrogen Alliance (IH2A) and increase support for large-scale green hydrogen hubs and projects across India with indicative funding of €1 billion, subject to Indian government and EIB approvals.

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.”

EU Ambassador to India Ugo Astuto said: “In September the First EU-India Green Hydrogen Forum was held in Delhi during European Commissioner for Energy Kadri Simson’s visit, strengthening EU-India clean energy cooperation. The European Investment Bank joining the India Hydrogen Alliance today further highlights a Team Europe approach for a green and resilient future, underpinning the EU Global Gateway strategy.”

The European Investment Bank is the world’s largest international public bank and the globe’s leading financier of renewable energy and climate action. As a longstanding partner for renewable energy in India and the largest climate financier in 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 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 underpins the Indian government’s confirmation of a $2 billion public finance allocation for the National Hydrogen Mission. This 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 currently exploring a credit facility with the Indian government to provide investments in key public sectors supporting the development of the green hydrogen industry. This facility would support the Indian government’s efforts to commercialise upcoming green hydrogen technologies and reduce costs through long-term investment in innovation, R&D, green hydrogen hubs, and pilot projects.

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

This project, supporting climate action, forms part of the EU’s Global Gateway initiative supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

Background information

About the EIB:

The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise high-quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — competitive interest rates with loan durations aligned with the projects. Through our partnerships with the European Union and other donors, we can provide grants to further improve the development impact of the projects we support.

About the EIB in India:

Since it began operations in India in 1993, the EIB has supported 26 projects in the country and has invested nearly €5 billion in transport, energy, agriculture, fisheries and forestry projects, and small businesses.

About the EIB in Asia:

For 25 years, the EIB has supported economic development in Asia and the Pacific region. The projects we finance make people’s lives easier — from cutting travel times in Bangalore with a new metro line, to providing cheaper, cleaner energy to western Nepal.

In Asia, we have chosen to focus our lending on climate action across all sectors. We also work to incorporate gender equality in our projects, ensuring that women, men, girls and boys can benefit from projects equally and equitably.

About the Global Gateway initiative

EIB Global is a key partner in the implementation of the EU’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does thanks to the Bank’s longstanding experience of 60 years. Alongside our partners, fellow EU institutions and EU Member States, we aim to support €100 billion of investment — around one third of the initiative’s overall budget — by the end of 2027.

About the India H2 Alliance (IH2A)

The India H2 Alliance is an industry coalition of global and Indian companies committed to the creation of a hydrogen value chain and to India’s economy. IH2A collaborates with private-sector partners, the government and the public to ensure that hydrogen production costs are reduced, a local supply chain for hydrogen and related applications grows and India is able to achieve its net-zero carbon ambitions by developing a hydrogen economy complementing its national renewable energy and electric vehicle/battery technology plans. The IH2A Steering Group comprises Chart Industries, Reliance Industries Limited (RIL), the JSW Group, Hero Future Energies and bp, supported by the IH2A Secretariat run by the consulting firm FTI Consulting. More information on IH2A and its activities is available at www.IH2A.com.