The European Investment Bank (EIB) and Hydrogen Europe have signed an agreement for consultancy services for green hydrogen projects.

Under the agreement, the EU bank will provide financing advisory support for hydrogen projects introduced by Hydrogen Europe – an umbrella association representing European industry, research, and associations in the hydrogen and fuel cell sector – and co-operate on market development initiatives and conduct joint market outreach.

In addition, the agreement will develop dedicated EIB financing products for green hydrogen and help to identify projects that can receive its funding and support their bankability.

The current share of hydrogen in Europe’s energy mix is less than 2% but is forecast to rise to 14% by mid-century – the EIB believes the technology can play a crucial role in achieving a carbon neutral EU economy by 2050.

The European Hydrogen Strategy, part of the European Green Deal, anticipates between €180 billion (£154bn) and €470 billion (£402bn) will be required for production capacities in the EU by 2050.

EIB President Werner Hoyer said: “Green hydrogen presents an opportunity to decarbonise industrial processes, particularly in sectors where emission reduction is urgent but difficult to achieve.

“Many European countries are actively supporting the development of hydrogen technologies. One of the main strengths of the European Investment Bank is that it combines advisory and technical support in the initial phases of a project with attractive forms of financing later on. This model is perfect for the development and deployment of new breakthrough technologies, including those based on the use of hydrogen.”