Germany grants EUR 100m for green hydrogen in Chile
German development bank KfW will provide a promotional loan of EUR 100 million (USD 103m) as part of a EUR-1-billion financing platform to support the development of green hydrogen projects in Chile.KfW has reached an agreement with the Republic of Chile and the Chilean economic development agency Cooperacion de Formento de la Produccion (CORFO) regarding the loan.The financing is part of the European Global Gateway Renewable Hydrogen Funding platform, whose total volume reaches up to EUR 1 billion. In addition to KfW’s loan, the amount includes 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 Inter-American Development Bank (IDB) and EUR 230 million from CORFO and other financiers.The funding will allow CORFO to refinance banks or issue guarantees to them. In turn, the banks will provide loans to private and public hydrogen projects. The programme will support projects in the entire value chain, including projects for hydrogen production plants and further processing, storage and transport infrastructure initiatives, factories for the manufacture of electrolysers and plans for industrial use of green hydrogen.“KfW's financing will have a structure-building effect at an early stage in order to mobilise private capital to finance Chilean green hydrogen projects on an industrial scale. At a later date, this will also enable the sale of green hydrogen to European customers within the framework of hydrogen partnerships,” KfW’s executive Christiane Laibach commented on the deal.In November, the development bank announced it would provide EUR 24 billion to support the construction of a national hydrogen core network in Germany.(EUR 1 = USD 1.03)
German development bank KfW will provide a promotional loan of EUR 100 million (USD 103m) as part of a EUR-1-billion financing platform to support the development of green hydrogen projects in Chile.
KfW has reached an agreement with the Republic of Chile and the Chilean economic development agency Cooperacion de Formento de la Produccion (CORFO) regarding the loan.
The financing is part of the European Global Gateway Renewable Hydrogen Funding platform, whose total volume reaches up to EUR 1 billion. In addition to KfW’s loan, the amount includes 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 Inter-American Development Bank (IDB) and EUR 230 million from CORFO and other financiers.
The funding will allow CORFO to refinance banks or issue guarantees to them. In turn, the banks will provide loans to private and public hydrogen projects. The programme will support projects in the entire value chain, including projects for hydrogen production plants and further processing, storage and transport infrastructure initiatives, factories for the manufacture of electrolysers and plans for industrial use of green hydrogen.
“KfW's financing will have a structure-building effect at an early stage in order to mobilise private capital to finance Chilean green hydrogen projects on an industrial scale. At a later date, this will also enable the sale of green hydrogen to European customers within the framework of hydrogen partnerships,” KfW’s executive Christiane Laibach commented on the deal.
In November, the development bank announced it would provide EUR 24 billion to support the construction of a national hydrogen core network in Germany.
(EUR 1 = USD 1.03)
What's Your Reaction?
