The President of Chile, Gabriel Boric Font, and the President of the European Commission, Ursula von der Leyen, signed two new cooperation agreements between the European Union and Chile, which will contribute to the development of the renewable hydrogen industry in Chile.
During the signing, President Boric drew attention to the initiatives, stating that “they are good news for our people but also for the world, because the green hydrogen industry offers great opportunities to move faster towards a green energy matrix.” He explained, “they are two instruments that will boost the green hydrogen industry in Chile, whose development, without a doubt, will contribute to improving the quality of life of Chileans.”
The project has a budget of €4 million from the European Union, supplemented by another €4 million from Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK). The fund also includes a grant of €16.5 million from the European Union Latin American and Caribbean Investment Facility (EU LACIF) and €200 million in credits from the European Investment Bank (EIB) and KfW, where each will contribute €100 million.
The President of the European Commission, Ursula von der Leyen, stated, “this is one of the most important projects that we can embark on together. This Fund for Renewable Hydrogen here in Chile will support the development of this strategic industry. It will create good jobs here in Chile and it will boost your exports of renewable hydrogen to the world, but of course also to partners like the European Union.”
Finally, President Boric appraised the meeting, stating that “the European Union is one of our main international partners, not only in commercial terms but also in cultural and political terms; we have shared values.”
The European Union is currently our fourth largest trading partner. Trade has doubled since the agreement was signed, reaching US$19.99 billion in 2022, with an average annual increase of 4.5%.
About the initiatives
The first agreement signed was for the “Team Europe Project for the Development of Renewable Hydrogen in Chile.” It is a technical assistance program to strengthen the conditions to develop the renewable and sustainable hydrogen economy in Chile.
The second is a declaration of intent for the “Team Europe Fund for Renewable Hydrogen in Chile.” It is a joint initiative between the European Investment Bank (EIB) and Germany’s KfW Development Bank, led by the European Union Delegation in Chile, which will finance projects to produce and use renewable hydrogen.