SANTIAGO, Nov. 11 (Xinhua) -- Chile has signed agreements with the World Bank and the Inter-American Development Bank (IDB) to promote green hydrogen production in the country, the Chilean Economic Development Agency (Corfo) said Friday.
Corfo said in a press release that the agreements were reached within the framework of the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), being held in Egypt.
The deals "will provide support to develop a green hydrogen strategy," Finance Minister Mario Marcel said in the release.
"These international organizations are going to provide knowledge, resources and also their experience ... so that in the future, private sector participation in the industry can also count on the support of these international organizations," Marcel said.
The agreement with the World Bank aims to promote Chile's green hydrogen initiatives as part of the country's "Green Hydrogen Facilitation Project to Support Green, Resilient and Inclusive Economic Development."
Chile will initially receive a 150-million-U.S.-dollar loan in 2023, and 200 million U.S. dollars at a later stage, to develop its green hydrogen industry.
Meanwhile, the agreement with the IDB provides for a results-based investment loan of up to 400 million U.S. dollars to back the industry's development.
Green hydrogen uses renewable electricity to split water into hydrogen and oxygen, with the hydrogen then used as fuel or fertilizer. ■
