Green hydrogen is gaining significant momentum in Chile with the Inter-American Development Bank (IDB) injecting $400 million into a $1 billion government financing facility to support projects across the green hydrogen value chain. The initiative aims to drive down capital costs and derisk investments. The IDB's president, Ilan Goldfajn, views green hydrogen as the 'sector of the future'. The IDB's leadership in this area is seen as a strong signal to the market, with European financial institutions, the World Bank, and Chilean development agency Corfo participating in the funding. The facility is expected to unlock $5 billion in investments by 2040, with several project owners already engaged in discussions with Corfo. Challenges faced include production costs, financing, and environmental permitting. The projects, which include hydrogen, e-fuels, and green ammonia, represent a significant investment opportunity for Chile, with some projects targeting domestic markets and others aiming for exports. The first contract linked to the facility is expected to be signed soon. The Chilean government, along with Corfo, is also focusing on developing local supply chains to support the green hydrogen industry's growth.