EU launches EUR-225m green hydrogen fund in Chile

The President of the European Commission, Ursula von der Leyen, on Wednesday launched a EUR 225 million (USD 243m) green hydrogen fund initiative in Chile during her visit to the country as part of a regional tour.

Von der Leyen highlighted that against the backdrop of growing global demand for hydrogen and the EU’s plans not only to produce 10 million tonnes of green hydrogen but also to import the same amount per year by 2030, the EU needs friends that produce green hydrogen.

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The launch of the project was presided over by the European Commission President and Chile’s President Gabriel Boric. It includes a technical assistance programme, with a budget of EUR 4 million each from the EU and the German Federal Ministry of Economics and Climate Protection (BMWK), to improve conditions for promoting green hydrogen in Chile.

There will also be a EUR 216.5 million fund which will provide funding for the development of renewable hydrogen production projects. The "Team Europe Renewable Hydrogen Fund in Chile" includes a EUR 16.5 million grant from the EU’s Latin America and Caribbean Investment Facility and loans of EUR 100 million each from the European Investment Bank (EIB) and German development bank KfW. The fund will be managed by Corporacion de Fomento de la Produccion (CORFO).

"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," said Kristin Lang, EIB Head of Division for the Latin American and Caribbean Public Sector.

Von der Leyen committed to a EUR-2-billion investment in Brazilian green hydrogen as she met with Brazilian President Luiz Inacio Lula da Silva earlier this week.

(EUR 1 = USD 1.082)