Chile’s renewable hydrogen sector received a boost through a collaborative financial initiative involving the European Union, European Investment Bank (EIB), KfW Development Bank, and Chilean entities such as the Corporación de Fomento de la Producción (CORFO) and the Ministry of Energy.
This initiative is structured under the Team Europe Renewable Hydrogen Funding Platform, which aims to fortify Chile’s burgeoning green hydrogen industry with investments totaling up to €216.5 million.
The platform is strategically designed to assist in the decarbonization of Chile’s energy framework, aiming to generate green jobs and stimulate business opportunities for both Chilean and European markets. Alongside providing solutions to Europe’s increasing renewable hydrogen import needs, it aids Chile’s strategy to transition its energy production to 100% renewable sources by 2050. Central to this initiative is the European Union – Latin America and Caribbean Global Gateway Investment Agenda, which seeks to foster infrastructure enhancement whilst delivering socio-economic benefits in these regions.
Within this framework, the EIB and KfW have each committed up to €100 million, with additional grants of €16.5 million facilitated by the EU Latin America and Caribbean Investment Facility (LACIF). These funds are directed at expanding Chile’s renewable energy and electrolyser capacities, estimated to add at least 150 MW for both categories.
Jozef Síkela, European Commissioner for International Partnership, emphasized the transformative potential of this agreement, affirming renewable hydrogen as a cornerstone of future energy solutions. Minister of Energy Diego Pardow further underscored the dual potential of green hydrogen developments to bolster decarbonization efforts and deliver substantial regional employment and developmental benefits.
José Miguel Benavente from CORFO pointed to the global significance of advancing the green hydrogen industry, while EIB Vice-President Ioannis Tsakiris highlighted the pivotal role of the Team Europe platform in driving sustainable hydrogen sector development in Chile.
Furthermore, Thomas Schmitt, representing the German Embassy in Chile, stressed the importance of mobilizing private investments to harness Chile’s renewable energy capabilities effectively, thereby catalyzing the production of green hydrogen on a larger scale.
This multi-faceted funding initiative is embedded within the broader context of the EU’s Global Gateway Investment Agenda, which aligns with global and regional connectivity goals across diverse sectors. The EU’s agenda aims to mobilize substantial investments aiming to improve quality infrastructure development worldwide and secure sustainable growth for partner countries, estimating an investment mobilization of up to €300 billion between 2021 and 2027.
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