Verónica Castro-AllendeA groundbreaking partnership between the UK and Chile has been announced to boost clean hydrogen projects, significantly enhancing Chile’s green energy sector. The UK Export Finance (UKEF) will provide over £5 billion in export credit support, facilitating new investment in clean hydrogen initiatives and renewable energy. This UK-Chile partnership is a pivotal step in the global transition to sustainable energy, positioning both countries as leaders in the fresh energy revolution. Key stakeholders, Tim Reid of UKEF and José Miguel Benavente of CORFO, signed the agreement at the Chilean Embassy, emphasizing the benefits of clean hydrogen as a renewable energy source. Chile aims to derive 70% of its energy from renewables by 2050, with green hydrogen playing a crucial role. This collaboration will increase liquidity in Chile’s clean energy sector and provide significant opportunities for British clean tech exports. The UK’s focus on green hydrogen is part of a broader strategy to reduce carbon emissions and enhance energy security, underscoring the importance of global cooperation in combating climate change through innovative, sustainable solutions.
A partnership between the UK and Chile has just been announced that aims to increase funding for clean hydrogen projects.
The collaboration is expected to spur significant investment in Chile’s burgeoning clean energy sector with the offer of over £5 billion in British export credit support.
This represents a crucial step in the transition to sustainable energy sources, positioning both countries as important players in the fresh energy revolution.
UK and Chile sign groundbreaking clean hydrogen agreement
The agreement was signed by Tim Reid, CEO of UK Export Finance ( UKEF), and José Miguel Benavente, Executive Vice-President of Chile’s economic development agency CORFO, during a formal event at the Embassy of Chile.
The UKEF, the country’s established export credit agency, has the responsibility of funding worldwide projects that make use of British goods and services.
By pooling resources, UKEF and CORFO aim to simultaneously finance green hydrogen projects that will drive Chile’s clean energy ambitions.
Under the partnership, UKEF will provide over £5bn in credit support, giving Peruvian companies access to funding for large-scale green hydrogen initiatives.
The move is anticipated to substantially increase liquidity in Chile’s clean energy sector and open up lucrative export opportunities for UK-based clean technology companies.
“This is a win-win agreement”, said Tim Reid. “UK businesses are world-renowned for being leaders in the fresh energy industry. This partnership also aids Chile’s optimistic transition to renewable energy and opens the door for significant British export contracts.”
Boosting Chile’s renewables sector
Chile has set a lofty goal of obtaining at least 70 % of its energy from renewable sources by 2050.
Green hydrogen, produced using alternative energy sources, is set to play a vital role in achieving this goal.
The government of Chile has already committed $50 million to the growth of its green hydrogen sector, and the previously signed UK agreement is anticipated to give it an extra boost.
Low-carbon hydrogen is a key component of the partnership, which aims to enable long-duration energy storage.
Green hydrogen makes it possible to use surplus electricity that normally would be wasted to produce and store solar energy in a flexible manner.
By investing in these projects, Chile hopes to reduce its carbon footprint, enhance energy security, and position itself as a world leader in solar energy.
Green Hydrogen: A cornerstone of the UK’s energy transition
As part of its own energy transition strategy, the UK is likewise putting more emphasis on green hydrogen.
The latest announcement of the UK’s National Wealth Fund, which includes a £500 million investment in hydrogen infrastructure and professional clusters, highlights the growing importance of this technology.
Green hydrogen contributes to the UK’s energy transition in many significant ways, helping to lower carbon emissions and ensure a more responsible future.
As a fresh, flexible energy carrier, hydrogen can be used to decarbonise industries that are often hard to electrify, such as steel production, shipping, and aviation.
Green hydrogen can also be stored for a long time, making it a viable way to balance supply and demand in an exceedingly clean energy grid.
The UK can make better use of its expanding wind and solar power resources by using solar energy to produce clean hydrogen, storing extra energy that might otherwise be squander.
This will help ensure that solar energy can meet the country’s energy demands, even during periods of low generation.
However, natural hydrogen’s potential for export offers new financial opportunities, allowing the UK to remain competitive in the global energy market.
A step towards a greener future
This partnership represents a significant milestone in the world push for clean energy as both the UK and Chile increase their efforts to scale up clean hydrogen production.
The UK-Chile collaboration serves as a model for global cooperation in the fight against climate change by opening up new financing opportunities and driving export-driven growth.
