Technical and technological cooperation
Team Europe RH2 Project
This technical assistance programme is a fundamental component of the TEI RH2 initiative in Chile, which will strengthen the conditions to promote the renewable and sustainable hydrogen economy in Chile.
The project has a budget of €8 million, of which €4 million comes from EU subsidies financed via its Euroclima programme and another €4 million committed via the German Federal Ministry for Economic Affairs and Climate Action (BMWK). It is implemented by the Germany International Cooperation Agency (GIZ (€7 million) and the Spanish Cooperation Agency AECID (€1 million).
Through this initiative, actions are implemented to promote the renewable and sustainable hydrogen economy in Chile in the following areas:
This work strand aims to improve the capacity to develop and implement a regulatory framework in order to build a sustainable and renewable hydrogen economy
- Action 1: Improving the regulatory framework for the sustainable production, storage, transport and export of renewable hydrogen and its by products.
- Action 2: Implementing a draft scheme or certification mechanism for the sustainable production of renewable hydrogen.
Strengthening the Chilean innovation ecosystem in the area of renewable hydrogen/PtX
- Action 1: Establishing mechanisms that facilitate the development of shared infrastructure for projects close to the national level
- Action 2: Proposing a methodology to carry out sustainable impact assessments that include social, economic and environmental dimensions
Highlighting the potential of shared infrastructure for renewable hydrogen projects as well as environmental and sustainability assessments.
- Action 1: Developing a pilot project on the local use of renewable hydrogen
- Action 2: Developing innovating tools for geospatial analysis that support the implementation and monitoring of the impact of renewable hydrogen projects.
Strengthening corporate, technological, logistics and financial cooperation between the EU and Chile in the renewable hydrogen sector.
- Action 1: Creation of the first public-private training network on renewable hydrogen
- Action 2: Improving and strengthening cooperation between the EU and Chile of public and private actors (with regional Latin American reach)
- Action 3: Offering technical assistance with renewable hydrogen and derivatives’ projects to close technical gaps
- Action 4: Establishing a financial consultancy for renewable hydrogen projects
- Action 1: R2H value chain driven from an inclusive development perspective
- Action 2: Technical training programmes focused on the needs of prioneering R2H projects
- Action 3: Establishment of vocational training programmes
- Action 4: Promote training and knowledge exchange among regional partners
- Action 5: Strengthening the science, research and development (R&D) system
Other technical and technological cooperation programmes
The EU financed the development of pre-investment studies for green hydrogen projects via the bilateral Platform for Development in Transition implemented by AGCID and in collaboration with CORFO and the Ministry of Energy
In the context of Euroclima+, the EU has joined forces with the Ministries of the Environment, Energy, Science, Technology, Knowledge and Innovation, and Finances, as well as with the Subsecretary for Regional Development, to support the preparation of Regional Plans for Climate Action, focused on the development of renewable hydrogen in the regions of Magallanes and Antofagasta.
There are new opportunities for academic cooperation with Chile under Horizon Europe (2021-2027), especially in the area of green hydrogen, where the EU will invest €1 billion (that will be mobilised together with another €1 billion from the private sector) in research and development, via the European Clean Hydrogen Alliance.
Copernicus is the European Union’s Earth Observation Programme, which offers information services based on observation data of the Earth via satellite and in situ (not space) data.
In Chile (a partner country since 2018), Copernicus has the potential to contribute to the territorial planning and monitoring of renewable hydrogen projects via the identification of infrastructure and the monitoring of environmental variables and territorial energy potential.
In Chile, various European research and development institutes are working on the development of renewable energies and RH2, including the Fraunhofer Institute from Germany and CEA Liten from France.
The EU financed the development of pre-investment studies for green hydrogen projects via the bilateral Platform for Development in Transition implemented by AGCID and in collaboration with CORFO and the Ministry of Energy
In the context of Euroclima+, the EU has joined forces with the Ministries of the Environment, Energy, Science, Technology, Knowledge and Innovation, and Finances, as well as with the Subsecretary for Regional Development, to support the preparation of Regional Plans for Climate Action, focused on the development of renewable hydrogen in the regions of Magallanes and Antofagasta.
There are new opportunities for academic cooperation with Chile under Horizon Europe (2021-2027), especially in the area of green hydrogen, where the EU will invest €1 billion (that will be mobilised together with another €1 billion from the private sector) in research and development, via the Clean Hydrogen Alliance.
Copernicus is the European Union’s Earth Observation Programme, which offers information services based on observation data of the Earth via satellite and in situ (not space) data.
In Chile (a partner country since 2018), Copernicus has the potential to contribute to the territorial planning and monitoring of renewable hydrogen projects via the identification of infrastructure and the monitoring of environmental variables and territorial energy potential.
- In Chile, various European research and development institutes are working on the development of renewable energies and RH2, including in Germany with Fraunhofer and in France with CEA Liten.
Business Cooperation
EU Member States participate in the TEI RH2 initiative via various courses of action, mainly via the private sector. These include the following:
Trade missions
Trade missions in Chile from Spain, Germany, the Netherlands, France and Austria on the development of RH2 between Chile and Europe, made up of leading companies in the sector that aim to incentivise corporate cooperation between both countries in boosting this emerging energy industry. Such missions act as focal points of the Member States involved in the development of the Team Europe Initiative.
Memoranda of understanding
Memoranda of understanding with Chile for the export of RH2 with the main European ports in terms of size and capacity of energy storage, namely Rotterdam, Antwerp, Zeebrugge and Hamburg. This will facilitate the establishment of an international supply chain for the transport of renewable hydrogen between Chile and Europe.
Maersk (Denmark) has produced prefeasibility studies for green corridors in Chile. For the second phase, an assessment of the technical, regulatory and commercial viability of the preselected corridors will be drawn up. This work includes the establishment of commercial models that can unblock investments in the whole value chain. For the final phase, the aim is to achieve the deployment of these green corridors between the ports involved and to establish zero emissions dispatch routes.
Other relevant initiatives in energy:
The EU participated significantly in the development of the Cerro Dominador project, the biggest solar power plant in Latin America. The EU, the KfW and the KfW IPEX-Bank contributed a total of €113 million to the financing of the project, through a subsidy from the EU’s Latin America and Caribbean Investment Facility (LACIF) and loans from the German Federal Ministry of the Environment’s International Initiative for the Protection of the Climate (IKI), executed by the German bank for development KfW.
Via the Latin America and Caribbean Investment Facility, Chile participates in the Geothermal Development Facility Latin America, which aims to eliminate obstacles to the development of geothermal energy via the creation of a Geothermal Risk Mitigation Fund, funding mechanisms for geothermal investments and a forum for assistance in which donors and partner governments can participate in a political dialogue on this subject.
As part of the EU’s commitment to ensuring that the ecological transition is inclusive and fair, the Mitigation Action Facility (formerly NAMA) instrument aims to contribute to the self-consumption of renewable energy in SMEs, promoting the adoption of renewable energy systems, including renewable hydrogen, thus creating the appropriate financial and technological conditions for the sustainable development of the industry.
In the context of its Climate Action Instrument, the EIB finances, with €600 million, the development of renewable energy and energy efficiency projects in Latin American countries (2022-2024), including Chile; investments in power stations generating photovoltaic solar energy on a large scale and wind energy via Enel Chile. In addition, it has granted a loan of €200 million to the state bank (BancoEstado) to promote energy efficiency in ‘Ecohousing’.
European credit and export agencies: partner IIFs (blending plus guarantees): EIB, IDB AFD, KFW, EB, FMO, CODIFES, CDP, AECID, IFC, EDFI. These can be public national or private development banks eligible for public management.
The EU participated significantly in the development of the Cerro Dominador project, the biggest solar power plant in Latin America. The EU, the KfW and the KfW IPEX-Bank contributed a total of €113 million to the financing of the project, through a subsidy from the EU’s Latin America and Caribbean Investment Facility (LACIF) and loans from the German Federal Ministry of the Environment’s International Initiative for the Protection of the Climate (IKI), executed by the German bank for development KfW.
Via the Latin America and Caribbean Investment Facility, Chile participates in the Geothermal Development Facility Latin America, which aims to eliminate obstacles to the development of geothermal energy via the creation of a Geothermal Risk Mitigation Fund, funding mechanisms for geothermal investments and a forum for assistance in which donors and partner governments can participate in a political dialogue on this subject.
As part of the EU’s commitment to ensuring that the ecological transition is inclusive and fair, the Mitigation Action Facility (formerly NAMA) instrument aims to contribute to the self-consumption of renewable energy in SMEs, promoting the adoption of renewable energy systems, including renewable hydrogen, thus creating the appropriate financial and technological conditions for the sustainable development of the industry.
In the context of its Climate Action Instrument, the EIB finances with €600 million, the development of renewable energy and energy efficiency projects in Latin American countries (2022-2024), including Chile; investments in power stations generating photovoltaic solar energy on a large scale and wind energy via Enel Chile. In addition, it has granted a loan of €200 million to the state bank (BancoEstado) to promote energy efficiency in ‘Ecohousing’.
European credit and export agencies: partner IIFs (blending plus guarantees): EIB, IDB AFD, KFW, EB, FMO, CODIFES, CDP, AECID, IFC, EDFI. These can be public national or private development banks eligible for public management.
Financial cooperation
Global Gateway RH2 Funding Platform
The Global Gateway RH2 Funding Platform is a joint initiative of the European Investment Bank (EIB) and the German Development Bank (KfW), led by the Delegation of the EU in Chile, which will channel funding for the development of projects to produce and use renewable hydrogen with a budget of €216 million.
The aim of the platform is to promote the growing renewable hydrogen market in Chile, foster local supply chains and strengthen the potential for green hydrogen production, while taking into account the importance of a just energy transition.
The Fund consists of a combined financing mechanism with a €16.5 million grant from the EU’s Latin America and Caribbean Investment Facility (EU LACIF) – and €200 million in guarantees from the development banks (with the EIB and KfW each providing €100 million). This fund will be managed by CORFO and will focus on the development of specific renewable hydrogen production projects and applications in Chile.
The Fund will comply with and promote compliance with the environmental and social safeguards of the development banks (EIB and KfW). The initiative is in the structuring phase and will be operational by 2024. In addition, this initiative is part of a larger CORFO plan for green hydrogen projects in Chile.
The aim is to mobilise more private and public financing for renewable hydrogen projects.
The Global Gateway RH2 Funding Platform is a joint initiative of the European Investment Bank (EIB) and the German Development Bank (KfW), led by the Delegation of the EU in Chile, which will channel funding for the development of projects to produce and use renewable hydrogen with a budget of €216 million.
The aim of the platform is to promote the growing renewable hydrogen market in Chile, foster local supply chains and strengthen the potential for green hydrogen production, while taking into account the importance of a just energy transition.
The Fund consists of a combined financing mechanism with a €16.5 million grant from the EU’s Latin America and Caribbean Investment Facility (EU LACIF) – and €200 million in guarantees from the development banks (with the EIB and KfW each providing €100 million). This fund will be managed by CORFO and will focus on the development of specific renewable hydrogen production projects and applications in Chile.
The Fund will comply with and promote compliance with the environmental and social safeguards of the development banks (EIB and KfW). The initiative is in the structuring phase and will be operational by 2024. In addition, this initiative is part of a larger CORFO plan for green hydrogen projects in Chile.
The aim is to mobilise more private and public financing for renewable hydrogen projects.
Other EU and Member States Financial Instruments:
The European Fund for Sustainable Development Plus (EFSD+) works by providing guarantees to countries or the private sector, reducing the risk and cost of loans.
Under the NDICI (MFF 2021-2027) there has been a first allocation of funds for Latin America and the Caribbean with the EIB. In the future, the EFSD+ will also provide guarantees to reduce the risk of investment and/or infrastructure projects, and thus attract financing that could not otherwise be mobilised.
EFSD+ guarantee schemes can start to be implemented in Chile, with a number of international and European financial institutions involved in schemes focussed on renewable energy in the LAC region (e.g. EIB, IFC, Proparco, EDFI, COFIDES, etc.).
For the Latin America and Caribbean region, the following four themes are relevant for accessing guarantees:
- Sustainable Cities
- Sustainable Finance (green bonds)
- SMEs
- Connectivity, transport, digital.
The Latin America and Caribbean Investment Facility (LACIF) is one of the European Union’s regional combined funding or ‘blending’ mechanisms. LACIF promotes the mobilisation of funds from European and regional financial institutions, governments and the private sector to carry out sustainable development projects in Latin America.
LACIF’s aim is to help Latin American countries finance projects in key sectors for the achievement of the Sustainable Development Goals, such as: renewable energy, environment, water and sanitation, urban and rural transport, and promotion of small and medium-sized enterprises (SMEs).
H2 Global is one of the German government’s most important instruments to enable the supply of green hydrogen to industry.
Germany’s international H2V strategy (H2 Global) finances a double auction programme for renewable hydrogen imports worth €900 million. The Netherlands has joined the scheme by contributing €300 million.
H2Global is an innovative instrument to promote timely and efficient technology and market growth for green hydrogen and hydrogen derivatives.
H2Global is designed to promote and accelerate the green transformation of our society and economy in a market-based manner. Working together with BMWK, H2Global has strongly supported the development of the European Hydrogen Bank.
The European Union’s Export Credit Agencies (ECAs) are governmental or semi-governmental entities that support their respective countries’ exports by providing insurance, guarantees and financing to companies that participate in international transactions. These agencies play a crucial role in minimising the risks associated with export operations, thereby facilitating companies’ access to global markets. Examples of ECAs in the European Union include Allianz Trade (France), SACE (Italy), CESCE (Spain), EKF (Denmark) and Atradius (Netherlands). Each of these agencies operates in partnership with the private sector and contributes to the promotion of international trade and economic growth both in the European Union and its trading partners.
The European Hydrogen Bank (EHB) is a European Commission initiative to facilitate both renewable hydrogen production within the EU as well as imports.
Its aim is to close the investment gap and connect the future supply of renewable hydrogen to European consumers to meet the planned target of 20 million tonnes by 2030, contributing to the RepowerEU targets and to the transition to climate neutrality.
In addition, the EU recently announced new guidelines for the EHB, with an initial budget of €800 million, aimed at accelerating investment and reducing the cost gap between renewable hydrogen and fossil fuels.
The Communication (COM 2023 156) establishes the four pillars of the EHB, which should be operational by the end of 2023. Two of them are financing mechanisms: one for creating the EU’s internal market and one for international imports into the EU. The third pillar concerns transparency and coordination: assessment of demand, infrastructure needs, hydrogen flows and cost data. The final element is the rationalisation of existing financial instruments, coordinating and combining them with new public and private funds, both in the EU as well as internationally.
The Commission intends for the EHB to bridge and reduce the cost gap between renewable hydrogen and fossil fuels for the first projects. This will be achieved through an auction system for renewable hydrogen production to support producers through a fixed price payment per kg of hydrogen produced for up to 10 years of operation.
The first pilot auctions are currently being designed and are scheduled to be launched in autumn 2023, with the support of €800 million from the Innovation Fund.
The Bank will set up an EU auction platform offering “auctions as a service” for Member States, using both the Innovation Fund and Member State resources, to finance renewable hydrogen projects without prejudice to EU state aid rules.
The European Fund for Sustainable Development Plus (EFSD+) works by providing guarantees to countries or the private sector, reducing the risk and cost of loans.
Under the NDICI (MFF 2021-2027) there has been a first allocation of funds for Latin America and the Caribbean with the EIB. In the future, the EFSD+ will also provide guarantees to reduce the risk of investment and/or infrastructure projects, and thus attract financing that could not otherwise be mobilised.
EFSD+ guarantee schemes can start to be implemented in Chile, with a number of European Financial Institutions involved in schemes focussed on renewable energy in the LAC region (e.g. FMO, Cofides, AECID, EIB, Proparco, EFI Association, etc.).
For the Latin America and Caribbean region, the following four themes are relevant for accessing guarantees:
- Sustainable Cities
- Sustainable Finance (green bonds)
- SMEs
- Connectivity, transport, digital.
The Latin America and Caribbean Investment Facility (LACIF) is one of the European Union’s regional combined funding or ‘blending’ mechanisms. LACIF promotes the mobilisation of funds from European and regional financial institutions, governments and the private sector to carry out sustainable development projects in Latin America.
LACIF’s aim is to help Latin American countries finance projects in key sectors for the achievement of the Sustainable Development Goals, such as: renewable energy, environment, water and sanitation, urban and rural transport, and promotion of small and medium-sized enterprises (SMEs).
H2 Global is one of the German government’s most important instruments to enable the supply of green hydrogen to industry.
Germany’s international H2V strategy (H2 Global) finances a double auction programme for renewable hydrogen imports worth €900 million. The Netherlands has joined the scheme by contributing €300 million.
H2Global is an innovative instrument to promote timely and efficient technology and market growth for green hydrogen and hydrogen derivatives.
H2Global is designed to promote and accelerate the green transformation of our society and economy in a market-based manner. Working together with BMWK, H2Global has strongly supported the development of the European Hydrogen Bank.
The European Union’s Export Credit Agencies (ECAs) are governmental or semi-governmental entities that support their respective countries’ exports by providing insurance, guarantees and financing to companies that participate in international transactions. These agencies play a crucial role in minimising the risks associated with export operations, thereby facilitating companies’ access to global markets. Examples of ECAs in the European Union include Allianz Trade (France), SACE (Italy), CESCE (Spain), EKF (Denmark) and Atradius (Netherlands). Each of these agencies operates in partnership with the private sector and contributes to the promotion of international trade and economic growth both in the European Union and its trading partners.
The European Hydrogen Bank (EHB) is a European Commission initiative to facilitate both renewable hydrogen production within the EU as well as imports.
Its aim is to close the investment gap and connect the future supply of renewable hydrogen to European consumers to meet the planned target of 20 million tonnes by 2030, contributing to the RepowerEU targets and to the transition to climate neutrality.
In addition, the EU recently announced new guidelines for the EHB, with an initial budget of €800 million, aimed at accelerating investment and reducing the cost gap between renewable hydrogen and fossil fuels.
The Communication (COM 2023 156) establishes the four pillars of the EHB, which should be operational by the end of 2023. Two of them are financing mechanisms: one for creating the EU’s internal market and one for international imports into the EU. The third pillar concerns transparency and coordination: assessment of demand, infrastructure needs, hydrogen flows and cost data. The final element is the rationalisation of existing financial instruments, coordinating and combining them with new public and private funds, both in the EU as well as internationally.
The Commission intends for the EHB to bridge and reduce the cost gap between renewable hydrogen and fossil fuels for the first projects. This will be achieved through an auction system for renewable hydrogen production to support producers through a fixed price payment per kg of hydrogen produced for up to 10 years of operation.
The first pilot auctions are currently being designed and are scheduled to be launched in autumn 2023, with the support of €800 million from the Innovation Fund.
The Bank will set up an EU auction platform offering “auctions as a service” for Member States, using both the Innovation Fund and Member State resources, to finance renewable hydrogen projects without prejudice to EU state aid rules.
DELEGATION OF THE EUROPEAN UNION IN CHILE
Address: Av. Apoquindo 2929, piso 15, Las Condes, 7550246 Santiago.
Email: delegation-chile-coop@eeas.europa.eu
Telephone number: +562 2428 6800
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