The Team Europe Initiative (TEI) on the development of Green Hydrogen (GH2) in Chile, is a joint effort of the EU and its Member States to foster cooperation with Chile for the development of its renewable hydrogen economy. It aims at supporting the decarbonisation of the Chilean economy, contributing to its national hydrogen strategy, creating green jobs and generating business opportunities for Chilean and European companies, in view of the EU’s efforts to diversify its energy supply and accelerate energy transition. It will support the creation of an attractive enabling environment, promoting R&D collaboration, assess infrastructure needs, address main social and environmental aspects, fostering business cooperation, technology transfer and access to finance.
In this framework, it has been set up the Global Gateway Renewable Hydrogen Fund for Chile which is a joint initiative by the European Commission, the European Investment Bank (EIB) and the German KfW Development Bank (KfW), to promote the incipient renewable hydrogen market in Chile and foster local supply chains, while considering the importance of a just energy transition. The aim of the Fund is to support the Chilean government in promoting the sustainable market ramp-up of a renewable hydrogen economy in Chile, which allows both the local use and the export of renewable hydrogen in the medium-term.
The Programme aims at fostering Chile’s potential at accomplishing the following objectives:
- Becoming a regional lead on Green Hydrogen and promote South-South cooperation
- Producing 150% of the existing global H2 market and 15% of the future demand in 2050
- Achieving the transition of the mining sector, which is currently Chile’s main industry, into low carbon mining
The Chile-Low Carbon programme is in line with the Sustainable Development Goals on Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Climate Action (SDG13), Peace and Justice Strong Institutions (SDG16), and Partnerships to achieve the Goal (SDG17).
The programme's activities revolve around three pillars:
1. Enabling environment through:
- Regulatory and policy development support
- Specialized human capital for GH2 production
- Assessment of GH2 value chain and suppliers support programme
- Green H2 production and application projects
- GH2 technological development and production
2. Green H2 I+D through:
- Technical assistance for coordinated implementation and use of synergies of the different contributions to Renewable Hydrogen Fund as well as TA activities on design, institutional development and building of capacities for the implementation of the Global Gateway Renewable Hydrogen Fund
- I+D+I development fund in GH2 production and applications
3. Facilitating private sector investment through blending and/or investment de-risking mechanisms