The signed support program seeks to increase public and private investment in H2V and its derivatives and promote domestic demand for the product.
The Inter-American Development Bank (IDB) and the Ministry of Finance of Chile signed a protocol act referring to the Program to Support the Development of the Green Hydrogen Industry in Chile, a $400 million loan operation for the development of the green hydrogen (H2V) industry and its derivatives in Chile.
The specific objectives of the Program are to promote private investment in H2V projects and it's derivatives, increase the supply of public inputs for the H2V industry and its derivatives, and promote domestic demand for these products.
According to the International Energy Agency, by 2050, around 300 million tons of hydrogen will be produced annually, more than four times the current demand. Almost half are expected to be green hydrogen, that is, hydrogen produced from renewable energies. Given Chile's natural advantages in producing renewable energy at low cost, the growing global demand for green hydrogen presents a great opportunity not only in terms of productivity but also sustainability.
The Program to Support the Development of the Green Hydrogen Industry in Chile is the second operation under the Conditional Credit Line for Investment Projects (CCLIP) for Productivity and Sustainable Development in Chile.
The protocol act was signed by the IDB president, Ilan Goldfajn, and the Minister of Finance of Chile, Mario Marcel, during the IDB Board of Governors Assembly held in the Dominican Republic.
"Chile is the first country in the region to receive a loan to support the green hydrogen sector, thus demonstrating its leadership in the fair energy transition and its commitment to decarbonization objectives. This type of hydrogen, produced from clean energy, promises to be a key tool for decarbonizing vast sectors of global economic activity. This operation marks a path that we at the Bank hope to be able to deepen throughout the region," said President Goldfajn.
