He world Bank awarded US$150 million to Chili to encourage investment in green hydrogenin its first global loan to promote this non-polluting energy source, the financial institution reported on Thursday.
Chile hopes to produce the lowest cost hydrogen in the world by 2030 and to be one of the three main world exporters of this energy by 2040.
The South American countryhas exceptional qualities for the development of a competitive green hydrogen industry, due to its renewables and its ability to attract investment in large-scale clean energy projects“, he claimed Carlos Felipe JaramilloVice President of the World Bank for Latin America and the Caribbean, quoted in a statement from the institution.
According to estimates from Chile’s National Green Hydrogen Strategy, this industry could generate up to US$330 billion in private investment opportunities and exports worth about US$30 billion in 2050.
Chili “has a comparative advantage relative to many other economies in the world”, affirmed the Chilean Finance Minister Mario Marcelquoted in the same statement.
The WB estimates that its loan “It will allow accelerating the green growth of the country, its energy transition and supporting its commitment to carbon neutrality in 2050″.
The loan will be implemented by Chile’s Production Development Corporation (CORFO) and will be used to establish a fund for mixed public and private financing.
It will benefit above all local communities andwill help generate green jobs, stimulate the economy and decarbonise industries”, adds the note.
According to Jaramillo, the project “can serve as a model” for other Latin American countries.
Green hydrogen does not emit greenhouse gases and offers the opportunity to decarbonise sectors where electrification would not be feasiblesuch as industrial or heavy or long-distance transport.
It also improves energy security, when stored for long periods, as well as food security, since it can be used to produce green ammonia, which is used as fertilizer.
Source: Gestion
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