Germany and Chile recently signed a letter of intent for a bilateral alliance on hydrogen production and trade to enable a renewable energy hydrogen supply chain between the nations. Under this, a green hydrogen working group would be created as a part of the Chilean-German Energy Association (AEE). The collaboration also seeks to enhance the development of low-carbon emission certification systems and to encourage the cooperative development of research, pilot, and demonstration projects.
Most importantly, partnership with Chile is also important since Germany’s main energy sector players were looking for new trade routes for green hydrogen imports as a better alternative to fossil fuels. In December, the German government announced its backing for Highly Innovative Fuels, Chile’s first eFuels initiative, which involves the creation and utilisation of green hydrogen to generate methanol and gasoline. The German government will contribute $9.76 million to the project through Siemens Energy.
The agreement was signed by Chile’s energy minister, Juan Carlos Jobet, and his German counterpart, Peter Altmaier, as part of a larger virtual visit by Chile’s president, Sebastian Piera, and German Chancellor Angela Merkel.