(AGENPARL) – Fri 28 March 2025 PRESS RELEASE2025-161-EN
Santiago de Chile, 28 March 2025
European Union, EIB and KfW to provide up to €216.5 million to finance renewable hydrogen projects in Chile
The Team Europe Renewable Hydrogen Funding Platform for Chile will support Chile’s renewable hydrogen industry and help meet the country’s target of 100% clean energy by 2050.
Today the European Commission, the European Investment Bank (EIB), KfW Development Bank, on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and the European Commission, Corporación de Fomento de la Producción (CORFO) and the Chilean Ministry of Energy signed agreements to support Chile’s growing renewable hydrogen industry via the Team Europe Renewable Hydrogen Funding Platform for Chile. The signing ceremony took place in Santiago de Chile and was attended by European Commissioner for International Partnership Jozef Sikela, Minister of Energy of the Republic of Chile Diego Pardow, Executive Vice-President of CORFO José Miguel Benavente, EIB Director of the International Partners Department Thouraya Triki, and, representing KfW, Thomas Schmitt, Chargé d’Affaires of the German Embassy to Chile.
The funding platform will support the decarbonisation of Chile’s economy, creating green jobs and generating business opportunities for Chilean and European companies while also helping Europe meet its import demand for renewable hydrogen. The Team Europe Renewable Hydrogen Funding Platform for Chile is part of the European Union – Latin America and the Caribbean Global Gateway Investment Agenda that facilitates priority investment projects to help address infrastructure needs in Latin America and the Caribbean, while creating local added value and promoting growth, decent jobs and social cohesion.
Under the platform, the EIB and KfW can provide financing to the Republic of Chile of up to €200 million (€100 million each), with CORFO as the implementing agency to channel the funds to renewable hydrogen initiatives. The EU Latin America and Caribbean Investment Facility (LACIF) will provide an additional grant of €16.5 million. The Team Europe Renewable Hydrogen Funding Platform for Chile supports Chile’s ambition to make its main sources of energy generation renewable and clean, with 100% clean energy before 2050. It is estimated that the operation will contribute to the development of at least 150 MW of new renewable energy generation capacity and 150 MW of new electrolysers capacity in the country.
“With this agreement, the European Union reaffirms its vision of renewable hydrogen as a pillar of the energy of the future, and together with Chile, a leader in the region in this field, we are advancing the development of this key industry. The collaborative work between CORFO, the European Investment Bank (EIB), KfW, and the European Union channels strategic resources towards innovative projects, generating mutual benefits for Chile and Europe. This initiative is a clear example of Team Europe’s commitment to sustainability, the creation of green jobs, and the strengthening of our economic ties,” said European Commissioner for International Partnership Jozef Sikela.
“The Team Europe Renewable Hydrogen Funding Platform for Chile will play a key role in supporting the Chilean government’s efforts to develop a sustainable and competitive renewable hydrogen sector. Through this platform, Team Europe is once again demonstrating its commitment to advance key Global Gateway investment priorities. By aligning with Chile’s ambitious climate action goals, we are fostering green energy solutions that create jobs, drive innovation and strengthen EU-Latin America cooperation. This partnership reflects our shared vision for a cleaner, more sustainable future,” said Vice-President of the European Investment Bank Ioannis Tsakiris.
“The creation of the green hydrogen industry is not only an opportunity to continue the decarbonisation process but can also contribute to providing quality jobs and opportunities for the regions where future projects will be located. Therefore, this initiative led by the European Union, which is another step in our long and close collaboration, is great news for the energy industry but also for the citizens of our country,” said Minister of Energy of the Republic of Chile Diego Pardow.
“The development of the green hydrogen industry represents a major challenge, not only in Chile but also globally. The creation of CORFO’s Green Hydrogen Facility, with contributions from multilateral institutions, including KfW and the European Investment Bank, constitutes a very relevant and necessary step forward to have financial instruments that can provide an important signal from the State in order to support the development of the industry and large-scale projects. We take on this challenge with great energy and enthusiasm,” said Executive Vice-President of CORFO José Miguel Benavente.
“Chile has outstanding renewable energy potential for the development of green hydrogen production. To realise this potential, it is essential to leverage private investment. KfW financing on behalf of BMWK will support the mobilisation of private capital for Chilean hydrogen projects at an early stage. At a later stage, this should also enable the export of green hydrogen to European customers within the framework of hydrogen partnerships,” said Chargé d’Affaires of the German Embassy to Chile Thomas Schmitt.
The Team Europe Renewable Hydrogen Funding Platform for Chile is part of the European Union’s Global Gateway Investment Agenda supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. The Global Gateway is the European Union’s contribution to narrowing the global investment gap worldwide. Between 2021 and 2027, the European Union expects to mobilise up to €300 billion of investments for sustainable and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities.
Background information
About EIB Global
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.
About EIB Global in Chile
The EIB is the largest multilateral public bank in the world. In 2024 it financed around €8.4 billion in investments outside the European Union via EIB Global, the arm of the EIB created in 2022 for activities beyond Europe. Since the EIB started working in Chile in 1994, it has provided over €942 million to finance investments on favourable conditions — in terms of both maturity and interest rates — with the aim of improving Chileans’ quality of life.
About EIB Global in Latin America
EIB Global has been providing economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and offering the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €15 billion to support more than 170 projects in 15 countries in the region.
About the Global Gateway Investment Agenda
EIB Global is a key partner in the implementation of the European Union’s Global Gateway Investment Agenda, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and Member States, we aim to support investment of €100 billion (around one-third of the overall budget of the initiative) by the end of 2027, including in Chile and Latin America.
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