Chilean Government announces creation of US$1 billion green hydrogen development fund

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July 3, 2023

On June 19, 2023, the Government of Chile announced the creation of a US$1 billion fund to foster the development of the green hydrogen industry in the country.

The "Fund for the Development of Green Hydrogen and its Derivatives in Chile" (hereinafter the "Fund"), aims to support the development of local demand to create a domestic consumer market, along with promoting the development of domestic production capacities to turn Chile into an exporter of Green Hydrogen, exploiting its competitive advantages.

The Fund will seek to promote the development of projects related to the production and demand of GH2 through instruments that allow mitigating the risks associated with the development of this type of projects, reduce their costs, and contribute to the execution of investments associated with this industry.

This financing program will begin operating in the second half of 2024 and will have an initial budget of US$1 billion, which will be financed with loans and contributions from international organizations, the European Union, and the Corporación de Fomento de la Producción, Corfo.

Among the contributing international organizations are the Inter-American Development Bank with US$400 million; the World Bank with US$150 million; the German Development Bank with US$100 million; and the European Investment Bank with US$109.67 million, among others.

The objective of the Fund is to leverage investments of approximately US$12.5 billion in the different areas associated with this industry.

See the full article in Spanish here