Innovative Finance Platform to Boost Renewable Hydrogen Projects in Chile
Key Ideas
- A new finance brokering service, Financial Service Assistance (FSA), is set to launch in Chile to support renewable hydrogen projects.
- FSA, led by GIZ Chile, will provide free services to optimize project financing and connect developers with investors.
- The initiative forms part of the Team Europe Initiative on Renewable Hydrogen Development and aims to mobilize investments in the hydrogen sector.
- Chile is focusing on scaling up hydrogen projects with the support of innovative financing solutions and public-private collaborations.
A groundbreaking finance brokering service named Financial Service Assistance (FSA) is soon to be introduced in Chile to advance renewable hydrogen projects. Spearheaded by the local office of the German Agency for International Cooperation (GIZ), FSA aims to enhance the financing opportunities for hydrogen projects and facilitate connections between developers and potential investors. The service, which will be accessible through an online dashboard on the 4e Chile website, offers consulting services to assist developers in preparing business models and plans for project presentations. FSA welcomes economically viable projects across the hydrogen value chain, with a minimum size requirement of US$10mn. The initiative is part of the Team Europe Initiative (TEI) on Renewable Hydrogen Development in Chile, co-financed by the EU and the German Ministry of Economics and Climate Action (BMWK). FSA's goal is to bridge the gap between developers and investors to stimulate investment in the hydrogen sector. The platform will feature data on the number and types of projects in the public section. Alongside FSA, GIZ is working on introducing a smart financing instrument and a foundation similar to Germany's H2Global to support the sector's growth. Chile is moving towards developing utility-scale hydrogen plants, focusing on aspects like permitting, financing, and public-private partnerships. With significant interest in hydrogen projects in Chile, the introduction of innovative financing mechanisms is crucial to attracting investments and advancing the renewable hydrogen industry.