The World Bank has approved a $150 million loan to support green hydrogen projects in Chile. This loan represents the World Bank’s first endeavor to promote green hydrogen and is in line with Chile’s commitment to achieving carbon neutrality by 2050.
The investment aims to accelerate the country’s green growth, energy transition, and promote resilient and inclusive economic development.
The project is expected to generate green jobs, stimulate economic growth, and help decarbonize domestic industries. The initiative will be implemented by the Chilean Production Development Corporation (Corvo), which will create a blended financing fund dedicated to green hydrogen projects and develop risk mitigation tools to enhance financing conditions. In addition, technical assistance will be provided to facilitate the development of the industry.
The World Bank aims to mobilize financial resources from the private sector and other multilateral partners to drive the development of this nascent industry. Moreover, the financial instrument is expected to attract additional investments from the private sector amounting to at least $280 million.
the project seeks to accelerate the transition from pilot projects to commercial operations.
