JUNE 29, 2021

Chile and Germany sign deal to boost green hydrogen production

Both countries agreed to strengthen cooperation on matters related to green hydrogen and announced the creation of a working group within the German-Chilean Energy Partnership that will identify viable projects associated with this “fuel of the future”.

This morning, Chile’s Energy Minister, Juan Carlos Jobet, and Germany’s Federal Minister for Economic Affairs and Energy, Peter Altmaier, signed a joint declaration to strengthen cooperation on matters related to green hydrogen and announced the creation of a working group within the German-Chilean Energy Partnership that will identify viable green hydrogen projects.

“We share Germany’s interest in moving towards carbon neutrality by 2050. To reach this goal, green hydrogen is essential,” stated Chile’s Energy Minister.

To this end, regular meetings of the working group will take place, strengthening bilateral dialogue and cooperation between Chile and Germany in these areas.

Both ministers agreed to the creation of a Green Hydrogen Working Group that will facilitate the development of supply chains abroad and share knowledge and experience in matters of safety rules and procedures. Furthermore, it will also provide an opportunity to advance in the development of low carbon emission certification systems and to promote the development of joint research, pilot and demonstration projects.

Federal Minister Altmaier mentioned the H2Global program, a German Government initiative that seeks to import green hydrogen and support electrolyzer projects abroad. He declared that “cooperation with Chile is important, given that the principal actors in Germany’s energy sector are looking for new trade routes for importing green hydrogen as a cleaner alternative to fossil fuels.”

Finally, the ministers also explained that this working group will look to identify opportunities to create consortia and investment, as well as to strengthen private sector networks and associations.

The working group will operate for 12 months and its continuation will then be assessed.

The signing of the declaration occurred in the context of a conference that took place this morning between Chile’s President Sebastián Piñera and the German Chancellor, Angela Merkel, a focus of which was the development of clean energy and green hydrogen.

In December the German Economy and Energy Ministry announced its support for Highly Innovative Fuels (HIF), the first eFuels project to be developed in Chile. The project will generate and use green hydrogen to produce methanol and gasoline. The German Government will contribute 8.2 million euros (US$ 9.76 million) through Siemens Energy.

German-Chilean Energy Partnership (AEE)

The German-Chilean Energy Partnership (AEE) became operational in Berlin on April 9, 2019. The partnership provides a forum for high-level political dialogue and brings together representatives from diverse sectors to share best practices and support the transition to a low-carbon energy system in both countries. In a first high-level joint meeting during COP25 in Madrid, both countries jointly decided to enhance cooperation in the following areas: green hydrogen and electromobility, energy efficiency, digitization, network expansion (regional), carbon neutral innovation, and coal exit strategies.