IDB, World Bank to finance Chilean green hydro
The Inter-American Development Bank and the World Bank have committed up to $750 million in green hydrogen financing in Chile. The pair signed an agreement with Chile’s economic development agency, Corfo.
Under the agreement, IDB will provide a performance-based loan of up to $400 million to increase investments in green hydrogen projects and improve labor, institutional and innovation capacities within the sector, as well as promote development in regions hosting green hydrogen projects.
This is the second loan the development bank disbursed under a $1 billion conditional credit line to fund productivity and sustainable development initiatives in Chile.
In addition to IDB's contribution, the World Bank will promote green hydrogen in Chile through a $150 million loan, expected for 2023. In a second stage, the bank will provide another loan for $200 million.
“This alliance, which was in the works for several months, will allow us to have support to develop our green hydrogen strategy. These international organizations are going to contribute knowledge, resources and also their experience in the private sector,” said Chile’s minister of finance, Mario Marcel.
Since 2020, Chile has adopted a national strategy for the development of green hydrogen. Earlier this year, Corfo provided financing to a trio of green hydrogen projects (PFR, 5/27). The agency granted a total of $21 million to projects developed by GNL Quintero, CAP and Air Liquide.