Chile: EU, EIB and KfW to Finance renewable hydrogen projects with up to €216.5 million

(EE Online/European Investment Bank) The Team Europe Renewable Hydrogen Funding Platform for Chile will support Chile's renewable hydrogen industry and help meet the country's target of 100% clean energy by 2050.

Today (June 14) the European Investment Bank (EIB), KfW Development Bank, Corporación de Fomento de la Producción (CORFO) and the Chilean Ministry of Finance signed a statement of intent 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 Commission President Ursula von der Leyen and Gabriel Boric, President of the Republic of Chile.

The statement of intent was signed by Kristin Lang, EIB Head of Division for the Latin American and Caribbean Public Sector; Mario Marcel Cullell, Chile's Finance Minister; and José Miguel Benavente, Executive Vice-President of CORFO.

The 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.

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.

"This project demonstrates how Team Europe can join forces to support a key Global Gateway investment priority which is aligned with Chile's ambitious climate action agenda. EIB Global is a natural partner for Chile; I am proud to see the cooperation between Europe and Chile growing through projects like this," saidKristin Lang, EIB Head of Division for the Latin American and Caribbean Public Sector.

Background information

About the EIB

The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms loans at competitive interest rates and with durations aligned with the projects they finance. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.

EIB Global is the EIB Group's specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

https://twitter.com/EIBGlobal

https://www.linkedin.com/company/eib-global/

About EIB Global in Chile

The EIB is the largest multilateral public bank in the world. In 2022 it financed around 10.8 billion in investments outside of the European Union via EIB Global, the arm of the EIB created that same year for activities beyond Europe. Since the EIB started working in Chile in 1994, it has provided over 776 million to finance investments on favourable conditions in terms of both maturity and interest rates with the aim of improving Chileans' quality of life.

About EIB Global in Latin America

EIB Global has been providing economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and offering the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around 13 billion to support more than 150 projects in 15 countries in the region.

About the Global Gateway initiative

EIB Global is a key partner in the implementation of the European Union's Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank's 65 years of experience in this domain. Alongside our partners, fellow EU institutions and Member States, we aim to support investment of 100 billion (around one-third of the overall envelope of the initiative) by the end of 2027, including in Brazil and Latin America. READ MORE

Chilean Government and the European Union launch two new cooperation initiatives on renewable hydrogen worth 225 million euros (Delegation of the European Union to Chile)

EIB signs on to support green hydrogen in Chile (Power Finance & Risk)