KfW has entered into an agreement with the Republic of Chile to provide a promotional loan of EUR 100 million aimed at developing a green hydrogen economy in the country. The contract was signed on behalf of the Federal Ministry for Economic Affairs and Climate Action (BMWK) and involves the Chilean Ministry of Finance and Cooperación de Formento de la Producción (CORFO). This initiative is part of the European Global Gateway Renewable Hydrogen Funding platform, which offers tailored financing for both private and public investments.
The total funding from this platform could reach up to EUR 1 billion. CORFO will use these funds to refinance banks or issue guarantees, enabling them to offer loans for private and public hydrogen projects. The scope includes projects along the entire value chain, such as renewable energy projects, electrolysers, storage, transport infrastructure, and industrial applications like steel production.
“Chile has extraordinary potential when it comes to renewable sources of energy for the successful development of hydrogen production. In order to take advantage of this, leveraging private investments for market development is essential. 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,” stated Christiane Laibach, Member of the Executive Board of KfW Group.
Chile's geographic features—vast land areas, sunny deserts, and strong southern winds—make it well-suited for establishing a competitive global hydrogen economy. This move is expected to support Chile's economic transformation sustainably while creating business opportunities for both Chilean and European companies.
The loan aligns with international initiatives like Team Europe Initiative (TEI) by the EU and its Member States and supports German federal goals regarding hydrogen development. Besides KfW’s contribution, other financial commitments include 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 the Inter-American Development Bank (IDB), along with approximately EUR 230 million from CORFO and other financiers.