Chile signs agreements with World Bank and IDB to promote green hydrogen

Chile signed agreements with the World Bank and the Inter-American Development Bank (IDB) to promote green hydrogen initiatives in the country, informed by the Chilean Economic Development Agency (Corfo).

In a statement issued yesterday, Corfo said that the signatures were made in the framework 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 Finance Minister, Mario Marcel, explained in the bulletin issued by Corfo that this alliance which has been in preparation for several months, “is going to allow us to have support to develop the Green Hydrogen strategy”.

“These international organizations will provide knowledge, resources, and also their experience in the link with the areas that cover the private sector in these institutions so that, in the future, the participation of private companies in the industry can also have the support of these international organizations through their windows,” said the official.

The agreement with the World Bank contemplates promoting green hydrogen initiatives in Chile within 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 stage, to contribute to the development of the green hydrogen industry in the southern nation.

Meanwhile, the agreement with the IDB ratified the program’s priority 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 financed through a results-based investment loan for an IDB financing amount of up to US$400 million.

Green hydrogen is obtained through electrolysis to separate hydrogen and oxygen from water using electrical energy.

When the element comes from renewable energy, it is called “green hydrogen” and is stored in a special form to be used in different ways, for example, as a clean fuel in transportation, mining trucks, or fertilizers.