EIB joins IH2A, backs hydrogen projects in India

Business & Finance

February 10, 2023, by Aida Čučuk

European Investment Bank (EIB), the bank of the European Union (EU), has signed a Memorandum of Understanding (MoU) 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 the Indian government and EIB approvals.

IH2A said 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.

The facility is expected to support the Indian government’s efforts to commercialise upcoming green hydrogen technologies and accelerate the cost reduction by investing continuously in innovation, R&D, green hydrogen hubs, and pilot projects.

The EIB is also financing green hydrogen investment in Europe and working closely with partners across Africa, Latin America, and Asia to accelerate large-scale green hydrogen investment, and IH2A noted that this project, supporting climate action, forms part of the EU’s Global Gateway Initiative in support of projects that improve global and regional connectivity in the digital, climate, transport, health, energy, and education sectors.

IH2A, an industry coalition of global and Indian companies committed to the creation of a hydrogen value chain and economy in India, said its focus is on attracting global climate finance, for the development of large-scale hydrogen hub development in India, and the alliance is working with the government of India, state governments, global hydrogen players, and Indian companies to achieve that.

The MoU with EIB follows the government of India’s confirmation of a $2 billion public finance allocation for the National Green Hydrogen Mission and according to IH2A, it will support the alliance 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.

Kris Peeters, Vice President of the EIB, said: “The EIB 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, in order to enable the use of green hydrogen to decarbonise energy, industry, and transport.”

“The strengthened cooperation through the IH2A 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. Joining IH2A builds on the EIB’s global climate engagement and our support for climate action in India over the last three decades.”

Jillian Evanko, President and CEO, Chart Industries and Founding Member, IH2A, said: “We are delighted to partner with 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 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 realise hydrogen commercialisation at scale, in the next half-decade. This is an essential part of getting the first few steps of the hydrogen transition right, before we look at 2030 scenarios.”

H.E. Ugo Astuto, EU Ambassador to India, said: “In September, the First EU-India Green Hydrogen forum was held in Delhi during the visit of Commissioner for Energy Kadri Simson, strengthening EU-India clean energy cooperation. The EIB joining the IH2A today further highlights a team Europe approach for a green and resilient future, underpinning the EU Global Gateway strategy.”

According to IH2A, since the beginning of its operations in India in 1993, the EIB supported 26 projects in the country and invested close to €5 billion in transport, energy, agriculture, fisheries, and forestry projects, as well as India’s small and medium enterprises.