Santiago, March 31, 2025
The visit of European Commissioner for International Partnerships, Jozef Síkela, to Chile culminated in a significant milestone: the symbolic signing of financing agreements that will inject up to €216.5 millioninto the development of renewable hydrogen in the country. This program, a key Team Europe initiative, aims to boost the local industry and position Chile as a global leader in clean energy.
The agreement was signed in Santiago by the European Commission, the European Investment Bank (EIB), KfW Development Bank, the Chilean Economic Development Agency (CORFO), and the Chilean Ministry of Energy. The ceremony was attended by Commissioner Síkela, Minister of Energy Diego Pardow, and CORFO Executive Vice President José Miguel Benavente, among other authorities.
The Team Europe Renewable Hydrogen financial program is fundamental to Chile’s goal of achieving a 100% clean energy matrix by 2050. The funds will be channeled through CORFO as the implementing agency, mobilizing up to €200 million in financing (€100 million each from the EIB and KfW), supplemented by an additional €16.5 million grant from the EU’s Latin America and Caribbean Investment Facility (LACIF).
“With this agreement, the European Union reaffirms its vision of renewable hydrogen as a pillar of future energy, and together with Chile, a leader in the region in this field, we are advancing the development of this key industry. The collaborative work among CORFO, the EIB, KfW, and the European Union channels strategic resources towards innovative projects, generating mutual benefits for Chile and Europe,” stated Commissioner Jozef Síkela.
This financial boost will not only promote the decarbonization of the Chilean economy but also create green jobs and business opportunities for both Chilean and European companies. 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 electrolyzer capacity in the country.
Minister of Energy, Diego Pardow, highlighted the importance of this alliance: “The creation of the green hydrogen industry is not only an opportunity to continue the decarbonization process but also to contribute to quality jobs and opportunities for the regions where future projects will be located.”
For his part, José Miguel Benavente, Executive Vice President of CORFO, affirmed: “The creation of Corfo’s Green Hydrogen ‘Facility,’ with the contribution of multilateral institutions, represents a very relevant and necessary step forward to have financial instruments that can provide a significant signal from the State to support the development of the industry and large-scale projects.”
This initiative is part of the European Union’s Global Gateway Investment Agenda for Latin America and the Caribbean (GGIA), which seeks to improve global and regional connectivity in key sectors such as digital, climate, transport, health, and energy, mobilizing up to €300 billion for sustainable and high-quality projects. Commissioner Síkela’s visit thus reaffirms the EU’s role as a strategic partner for Chile in promoting sustainable investments and responsible cooperation.
Image credits: EU Delegation in Chile