KfW Supports Hydrogen Projects in Chile
In the beginning of Janury on behalf of the Federal Ministry for Economic Affairs and Climate Action (BMWK), KfW signed an agreement with the Republic of Chile, represented by the Chilean Ministry of Finance, and the Chilean Economic Development Agency Cooperación de Fomento de la Producción (CORFO), for a promotional loan of EUR 100 million. The loan aims to establish a renewable hydrogen economy in Chile that considers social and environmental concerns. It is part of the European financing platform Global Gateway Renewable Hydrogen Funding Platform, which provides tailored financing for private and public investments. The platform will include up to EUR 1 billion in total, with CORFO refinancing banks or issuing guarantees to them. These banks, in turn, provide loans for private and public hydrogen projects.
The funded projects cover the production and further utilization of green hydrogen across the entire value chain. Examples include facilities for producing green hydrogen (e.g., renewable energy projects and electrolyzers) and its further processing (e.g., into ammonia). Additionally, funding may extend to storage and transportation infrastructure, industrial use of green hydrogen (e.g., for steel production), and factories for manufacturing electrolyzers.
“Chile has extraordinary potential for renewable energy sources to successfully establish hydrogen production. Leveraging private investments is essential for market development. KfW’s financing creates structural impacts at an early stage, mobilizing private capital to fund Chilean green hydrogen initiatives on an industrial scale. At a later stage, this will also enable the distribution of green hydrogen to European buyers within the framework of hydrogen partnerships,” said Christiane Laibach, member of the Executive Board of KfW Group.
Chile offers ideal conditions for developing a globally competitive hydrogen economy, with its vast available land, sun-rich deserts, and strong southern winds. This will drive the sustainable transformation of Chile’s economy, create business opportunities for Chilean and European companies, and emphasize the importance of a just energy transition.
The promotional loan supports the internationally agreed funding program Team Europe Initiative (TEI) of the EU and its member states. The financing provided by KfW aligns with the German Federal Government’s hydrogen initiative and the EU’s development goals. The financing platform will offer funding of nearly EUR 1 billion, with contributions including EUR 100 million from KfW, EUR 100 million from the European Investment Bank (EIB), EUR 16.5 million from the EU, USD 150 million from the World Bank, EUR 400 million from the Inter-American Development Bank (IDB), and approximately EUR 230 million from CORFO and other financiers.
Source: https://www.kfw.de/About-KfW/Newsroom/Latest-News/Pressemitteilungen-Details_833344.html
