The bank of the European Union, European Investment Bank (EIB), said it has signed a memorandum of understanding (MoU) with India Hydrogen Alliance (IH2A) to provide €1 billion (~$1.1 billion) to develop large-scale green hydrogen hubs and projects across India. The funding would be subject to approvals from EIB and the Indian government.

Further, EIB formally agreed to join the IH2A, a move that is expected to bring the industry, investors, and government agencies together on the green hydrogen hubs and projects.

The MoU follows the government of India’s confirmation of a $2 billion public finance allocation for the National Green Hydrogen Mission.

Earlier this year, the Union Cabinet approved the National Green Hydrogen Mission to facilitate demand, creation, production, utilization, and export of the fuel with an initial outlay of ₹197.4 billion (~$2.3 billion).

The Mission was followed by the ‘Green Hydrogen Policy’ to help the country achieve a production target of 5 million tons of the clean fuel by 2030.

“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 Indian government’s efforts to commercialize upcoming green hydrogen technologies and accelerate cost reduction by investing continuously in innovation, R&D, green hydrogen hubs, and pilot projects,” the bank said.

The EIB said it 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.

Kris Peeters, Vice President of the EIB, said, “The European Investment Bank recognizes the huge potential of developing and reducing the cost of green hydrogen in India. 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.”

IH2A is an industry coalition of global and Indian companies working for a hydrogen value chain and economy in India. It collaborates with private sector partners, the government, and the public to ensure that costs of hydrogen production are brought down, a local supply chain for hydrogen and related applications grows and India is able to achieve its net-zero carbon ambitions.

Jillian Evanko, President and CEO, 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. 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: “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.”