Chile signed agreements with the World Bank and the Inter-American Development Bank (IDB) to promote green hydrogen initiatives in the country, the Chilean Economic Development Agency (Corfo) reported.
In a statement issued yesterday, Corfo said the signatures were made in the context of Chile’s presence at the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), which is being held in Egypt.
The Chilean Minister of Finance, Mario Marcel, explained in the bulletin issued by Corfo that this alliance, which has been in preparation for several months, “will allow us to have support for the development of the Green Hydrogen strategy”.
“These international organizations will provide knowledge, resources, but also their experience in connection with the fields that cover the private sector in these institutions, so that in the future, the participation of private companies in the industry will also have their support. international organizations through their windows,” the official said.
The agreement with the World Bank envisages the promotion of green hydrogen initiatives in Chile under the “green hydrogen facility project framework to support green, resilient and inclusive economic development”.
This initiative will allow access to a loan for a total of 150 million dollars in 2023 and 200 million dollars in a second phase, to contribute to the development of the green hydrogen industry in the southern country.
Meanwhile, the agreement with the IDB ratified the priority of the program to support the green hydrogen industry in Chile, which is the second individual operating under the Conditional Credit Line for Investment Projects for Productivity and Sustainable Development in Chile.
This will be funded through a results-based investment loan for an IDB financing amount of up to $400 million.
Green hydrogen is obtained through electrolysis to separate hydrogen and oxygen from water using electricity.
When the element comes from renewable energy, it is called “green hydrogen” and is stored in a special form to be used in various ways, for example, as a clean fuel in transport, mining trucks or fertiliser.
