Chile’s nascent green hydrogen industry gets a $400 million boost from IDB
Earlier this week, the Inter-American Development Bank (IDB) approved a loan of $400 million to support the development of green hydrogen and derivatives industry in Chile.
The infusion of new funds will be utilized for financing new projects in green hydrogen, domestic demand development, human capital formation, creation of intermediate goods and services. Chile is among the highest per capita carbon emitting countries in Latin America and the Carribean, therefore strengthening the green hydrogen industry is important for the country if it has to meet the global goals set by the Intergovernmental Panel on Climate Change (IPCC) to cut emissions by half by 2030 and reach net zero emissions before 2050.
"The IDB loan helps increase investment in green hydrogen in Chile, and allows the country to advance in the development of a high-potential sector that in addition to boosting the economy will contribute to promoting environmental sustainability and address climate change with an inclusive approach," said Maria Florencia Attademo-Hirt, IDB Representative in Chile.
The $400 million loan is the second credit operation under the $1 Billion Conditional Credit Line for Investment Projects (CCLIP) for productivity and sustainable development in Chile. The term of repayment is a period of 24 years and 6.5 year grace period and an interest rate based on the Secured Overnight Financing Rate (SOFR).
The latest investment in the green hydrogen sector is expected to help in the development of applied research financing, technological innovation, and promotion of entrepreneurship in the green hydrogen sector.