UK and Chilean governments unveiled a collaborative effort to bolster the green hydrogen sector. This initiative promises over £5 billion in UK export credit support and aims to unlock significant new financing opportunities.

Tim Reid, CEO of UK Export Finance (UKEF), and José Miguel Benavente, Executive Vice President of the Chilean economic development agency CORFO, formalized the agreement during an event at the Embassy of Chile.

UK Export Finance and CORFO Partnership

UKEF, the UK’s export credit agency, plays a crucial role in facilitating the financing of major projects utilizing UK goods and services. This partnership with CORFO is designed to jointly finance eligible hydrogen projects in Chile, thereby enhancing liquidity in Chile’s renewable energy sector. This collaboration is set to generate substantial export opportunities for UK-based cleantech companies.

Significance of Low-Carbon Hydrogen

Low-carbon hydrogen stands as a versatile technology for power generation and long-term energy storage, particularly by utilizing curtailed electricity. This partnership aligns with the broader UK government strategy, including the recent launch of a National Wealth Fund. This fund will invest directly in ports, hydrogen, and industrial clusters across the UK, notably allocating £500 million towards green hydrogen manufacturing.