Chile: EU, EIB and KfW to finance renewable hydrogen projects in Chile with up to €216.5 million
Today the European Commission, the European Investment Bank (EIB), KfW Development Bank, Corporación de Fomento de la Producción (CORFO) and the Chilean Ministry of Energy signed agreements to support Chile’s growing renewable hydrogen industry via the Team Europe Renewable Hydrogen Funding Platform for Chile. The signing took place in Santiago de Chile and was attended by European Commissioner for International Partnership Jozef Síkela, Minister of Energy of the Republic of ChileDiego Pardow, Executive Vice-President of CORFO José Miguel Benavente, EIB Director of the International Partners Department Thouraya Triki, and, representing KfW, Thomas Schmitt, German Chargé d’Affaires a.i..
The funding platform will support the decarbonisation 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. 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 facilitates 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.
Under the platform, the EIB and KfW can provide financing to the Republic of Chile of up to €200 million (€100 million each), with CORFO as the implementing agency to channel the funds to renewable hydrogen initiatives. The EU Latin America and Caribbean Investment Facility (LACIF) will provide an additional grant of €16.5 million. The Team Europe Renewable Hydrogen Funding Platform for Chile supports Chile’s ambition to make its main sources of energy generation renewable and clean, with 100% clean energy before 2050. 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 electrolysers capacity in the country.
European Commissioner for International Partnership Jozef Sikela, said:
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. This initiative is a clear example of Team Europe’s commitment to sustainability, the creation of green jobs, and the strengthening of our economic ties”
Minister of Energy of the Republic of Chile Diego Pardow, said:
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.”
Executive Vice-President of CORFO José Miguel Benavente, said:
The development of the green hydrogen industry represents a major challenge, not only in Chile but also globally.
“The creation of CORFO’’s Green Hydrogen Facility, with contributions from multilateral institutions, including KfW and the European Investment Bank, constitutes a very relevant and necessary step forward to have financial instruments that can provide a relevant signal from the State in order to support the development of the industry and large-scale projects. We take on this challenge with great energy and enthusiasm.”
Vice-President of the European Investment Bank Ioannis Tsakiris, said EIB Director of the International Department Thouraya Triki, said:
The Team Europe Renewable Hydrogen Funding Platform for Chile will play a key role in supporting the Chilean government’s efforts to develop a sustainable and competitive renewable hydrogen sector.
“Through this platform, Team Europe is once again demonstrating its commitment to advance key Global Gateway investment priorities. By aligning with Chile’s ambitious climate action goals, we are fostering green energy solutions that create jobs, drive innovation and strengthen EU-Latin America cooperation. This partnership reflects our shared vision for a cleaner, more sustainable future,”
The Chargé d’Affaires of the German Embassy in Chile, Thomas Schmitt, said:
Chile has exceptional renewable energy potential for the development of green hydrogen production.
“To leverage this potential, it is essential to catalyze private investment. In a first stage, financing from KfW on behalf of BMWK will support the mobilization of private capital for Chilean hydrogen projects. In a later stage, this should also enable the export of green hydrogen to European customers within the framework of hydrogen partnerships.”,
The Team Europe Renewable Hydrogen Funding Platform for Chile is part of the European Union’s Global Gateway Investment Agenda supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Global Gateway is the European Union’s contribution to narrowing the global investment gap worldwide. Between 2021 and 2027, the European Union expects to mobilise up to €300 billion of investments for sustainable and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities.
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Chile: EU, EIB and KfW to finance renewable hydrogen projects in Chile with up to €216.5 million, source
