The European Commission, the European Investment Bank (EIB), KfW Development Bank (KfW), Corporación de Fomento de la Producción (CORFO) and the Chilean Ministry of Energy have signed agreements to support Chile’s renewable hydrogen industry via the Team Europe Renewable Hydrogen Funding Platform for Chile.
As disclosed, under the platform, the EIB and KfW can provide financing of up to €200 million (€100 million each), with CORFO as the implementing agency to channel the funds to renewable hydrogen initiatives. The European Union (EU) Latin America and Caribbean Investment Facility (LACIF) will, reportedly, provide an additional grant of €16.5 million.
The platform is expected to support the decarbonization of Chile’s economy, creating green jobs and generating business opportunities for Chilean and European companies while also helping Europe meet its import demand for renewable hydrogen.
It is estimated that the operation will contribute to the development of at least 150 MW of new renewable energy generation capacity and 150 MW of new electrolyzer capacity in the country, according to the EU.
European Commissioner for International Partnership Jozef Sikela commented: “With this agreement, the European Union reaffirms its vision of renewable hydrogen as a pillar of the energy of the future, and together with Chile, a leader in the region in this field, we are advancing the development of this key industry. The collaborative work between CORFO, the European Investment Bank (EIB), KfW, and the European Union channels strategic resources towards innovative projects, generating mutual benefits for Chile and Europe…”
Minister of Energy of the Republic of Chile Diego Pardow stated: “The creation of the green hydrogen industry is not only an opportunity to continue the decarbonization process but can also contribute to providing quality jobs and opportunities for the regions where future projects will be located. Therefore, this initiative led by the European Union, which is another step in our long and close collaboration, is great news for the energy industry but also for the citizens of our country.”
To note, the Team Europe Renewable Hydrogen Funding Platform for Chile is part of the European Union – Latin America and the Caribbean Global Gateway Investment Agenda (GGIA). This agenda is said to facilitate priority investment projects to “help address infrastructure needs in Latin America and the Caribbean, while creating local added value and promoting growth, decent jobs and social cohesion.”