EIB working with state companies to fund green hydrogen projects

"We see opportunities in the green hydrogen mission of India. Europe is talking a lot more about green hydrogen, and we are looking at collaborations to develop clean technology, the next generation of electrolyzers," Beer told Mint in an interview. "To produce green hydrogen, you need green energy and so I think, especially from the renewable energy perspective, it will be something that will have demand from the Indian side.

Beer, who's on a visit to India, added that the EIB can contribute to India's efforts by bringing in experts to collaborate with local partners. The EIB formally agreed to join the India Hydrogen Alliance in 2023 and increase support for large-scale green hydrogen hubs and projects across India with indicative funding of €1 billion. However, the Luxembourg-based multilateral agency has yet to disburse any of its green hydrogen funding into the country.

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"We are not gifting money. We are giving out loans, so we need bankable projects for our investments," Beer said. "At the moment, we are discussing how to make the (€1 billion) investment in green hydrogen projects. So far, we do not have a project signed, but we are looking at the ecosystem. We are especially interested in developing the whole ecosystem."

The EIB has invested heavily in urban mobility, including metro projects in Agra, Kanpur, Lucknow, Bhopal, Pune and Bengaluru, apart from significant investments in solar, wind and water projects in the South Asian country, Beer said.

Strategic priorities

The EIB has committed investments of almost €5 billion ( ₹46,500 crore) since 1993 in signed financing to help India achieve its strategic priorities in the areas of climate action, sustainable transport, the electrification of railways and renewable energy, including solar and hydrogen power generation and transmission.

At €3.25 billion, India has received the highest amount of EIB loans for urban mobility outside the EU. It has also so far financed €1.7 billion of wind projects, grid-connected solar PV and hydroelectric projects, supporting more than 1.8 GW of generation capacity while facilitating grid connections to 3.3 million households. The agency is also investing in water pipelines, supply and sanitation in India.

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"Recently, our investment supporting water supply and sanitation, in partnership with the Asian Development Bank, was approved. We also have an investment in a private sector fund targeting the water and sanitation space across India and other regions," Beer said.

She added that over 90% of the EIB's investments in India are towards climate-relevant projects that support renewable energy, reduce methane emissions and improve energy efficiency.

The EIB, in addition to its lending activities, currently provides over 300 dedicated technical assistance assignment and advisory services, supporting the preparation and implementation of projects with a positive impact on employment and economic growth.

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"Nobody wants to live in a region with air pollution. Nobody wants to live in an area where the water is polluted, or the soil is polluted. So I think the question is to invest in better and greener technologies," Beer said. "Maybe clean energy will be adapted over time, bit by bit. But we can show that when implemented in the right manner, with cutting-edge technologies, it (clean energy) can be at the same price or even become cheaper than the traditional energy sources (fossil fuel)."