Why this is important to Wisconsin businesses: Wisconsin businesses have an opportunity to support and invest in green energy projects in the market.
Chile’s goal to become a major global producer of green hydrogen is getting a big boost from the U.S. and the World Bank.
The World Bank’s Board of Directors has approved a $150 million loan from the U.S. to promote investment in green hydrogen projects in Chile—the first such loan it has authorized, the World Bank Group says. The financing is expected to generate at least $280 million in private investments and accelerate the viability of Chile’s green power projects.
“Chile has exceptional attributes for developing a competitive green hydrogen industry given its renewable resources and ability to attract investment in large-scale clean energy projects,” says Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean. He says the project can become a model for other countries in the region.
Chile has set a goal of converting 70% of its total energy consumption to renewables by 2030, with plans to become carbon-neutral by 2050.
The solar radiation in northern Chile’s Atacama Desert and strong winds in southern parts of the country offer ideal conditions for solar and wind renewable energy installations. “We have the renewable
energy potential to install 70 times the electricity generation capacity we have today. This abundant renewable energy will enable us to become the cheapest producer of green hydrogen on Earth,” the government said, in a 2020 report.
Hydrogen is produced by splitting water molecules into hydrogen and oxygen. When the electrical energy used for this process comes from renewables, such as solar and wind power, the resulting hydrogen is clean, highly efficient, and does not emit greenhouse gases.
Green hydrogen can be used to reduce harmful emissions in sectors such as manufacturing or long-distance transportation. It can also be used to produce green ammonia, used in fertilizers for agriculture, and it can be stored for long periods, “increasing the integration of renewable energies into the grid,” the World Bank Group says.
Chile plans to produce the lowest-cost hydrogen in the world by 2030, and to become one of the world’s top three hydrogen exporters by 2040, according to Chile’s National Green Hydrogen Strategy.
Wisconsin companies in the green energy sector could find market opportunities in Chile.
