The UK and Chilean governments have launched a partnership to help unlock new financing for the green hydrogen sector, with over £5 billion available in UK export credit support.
Tim Reid, CEO of UK Export Finance (UKEF), and José Miguel Benavente, Executive Vice-President of the Chilean economic development agency CORFO, signed the partnership agreement at the Embassy of Chile.
UKEF is the UK export credit agency. It can help organisations in Chile to finance major projects which use UK goods and services.
The two government agencies are seeking to pool resources and jointly finance eligible hydrogen projects in Chile. This is expected to increase liquidity in Chile's burgeoning renewables sector and create millions of pounds in new export opportunities for world-leading cleantech businesses from the UK.
Low-carbon hydrogen can act as a flexible generating technology and provide long-duration energy storage by making use of curtailed electricity.
This agreement follows the UK government's announcement of a National Wealth Fund, which will directly invest in ports, hydrogen and industrial clusters in every corner of the UK, including £500 million to support the manufacturing of green hydrogen.
Tim Reid, CEO of UK Export Finance, said:
UK businesses are world-renowned as leaders in the clean energy sector. This is a win-win agreement which paves the way for major UK export contracts and will support Chile's ambitious plan for transitioning to renewable energy.
The Chilean government has already committed $50 million towards the development of green hydrogen production in the country, which aims to source at least 70% of its total energy production from renewables by 2050.
UKEF has over £5 billion in financing available for projects in Chile and is able to support loans denominated in Chilean pesos.
