The World Bank has provided a US$150 million loan to support Chile’s green hydrogen industry, recognizing the country as a leader in clean energy and a potential model for other developing Latin American economies.
Chile has implemented regulations to certify the origin of its products, enabling access to European markets and offering a blueprint for other nations.
Carlos Felipe Jaramillo, Vice President for Latin America and the Caribbean at the World Bank, sees Chile as having exceptional qualities for developing a competitive green hydrogen industry.
The loan, executed by the Chilean Economic Development Agency (Corfo), aims to mitigate investment risks and promote early-stage green hydrogen projects.
Stephanie Gil, responsible for energy sector participation in Latin America and the Caribbean at the World Bank, emphasizes the need for regulations, international certifications, and innovative financing mechanisms.
The World Bank plans to collaborate with other multilateral agencies and the private sector to leverage support.
Chilean Finance Minister Mario Marcel highlights the country’s competitive advantage in green hydrogen.
The World Bank intends to share Chile’s experience with other governments, including Morocco and India, which have shown interest in becoming leaders in the sector.
The World Bank believes that green hydrogen will accelerate the energy transition by enabling long-term storage and integrating more renewable energy.
With its decarbonized regions and expertise in exporting raw materials, Latin America has an advantage.
The World Bank’s priority is ensuring investments generate local wealth and it has established the Hydrogen for Development Partnership (H4D) to facilitate knowledge exchange.
Chile estimates the green hydrogen industry could attract US$330 billion in investments and generate US$30 billion in annual exports by 2050.