UK and Chile Partner to Boost Green Hydrogen Sector with £5 Billion Support
Key Ideas
  • UK and Chilean governments launch a partnership to provide over £5 billion in export credit support for green hydrogen projects.
  • The agreement aims to increase liquidity in Chile's renewables sector and create export opportunities for UK cleantech businesses.
  • Chile aims to source at least 70% of its total energy production from renewables by 2050, with a commitment of $50 million towards green hydrogen production.
  • UK Export Finance has funding available to support loans denominated in Chilean pesos for projects in Chile.
The UK and Chilean governments have announced a partnership to facilitate financing for the green hydrogen sector. Through UK Export Finance (UKEF), over £5 billion in export credit support will be made available for eligible hydrogen projects in Chile. This collaboration between UKEF and the Chilean economic development agency CORFO aims to bolster liquidity in Chile's growing renewables sector while opening up export opportunities for UK cleantech companies. The move aligns with Chile's ambitious plan to transition to renewable energy, with a target for 70% of its energy production to come from renewables by 2050. The agreement also follows the UK government's establishment of a National Wealth Fund, which includes significant investment in green hydrogen manufacturing and infrastructure. Tim Reid, CEO of UK Export Finance, expressed optimism about the partnership, highlighting the potential for major UK export contracts and support for Chile's renewable energy transition. Furthermore, the commitment of $50 million from the Chilean government towards green hydrogen production underscores the country's dedication to sustainable energy practices. With UKEF offering financing options denominated in Chilean pesos, the partnership sets the stage for collaborative and impactful initiatives in the green hydrogen sector.
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