European Commission President Ursula von der Leyen has launched a new green hydrogen fund on a visit to Chile.
It will have an initial budget of €225m and will support the production of the fuel in Chile.
Von Der Leyen said: “This is a great step forward because the global demand for hydrogen is skyrocketing and will increase enormously over the next years.
“Just as an example, the European Union has decided by 2030 not only to produce domestically 10 million tonnes of green hydrogen but also to import 10 million tonnes of it per year.
“So we need friends that are producers of this green hydrogen.
“For us, Chile is our friend. This is one of the most important projects that we can embark on together.
“This Fund for Renewable Hydrogen in Chile will support the development of this strategic industry.
“It will create good jobs in Chile and will boost exports of renewable hydrogen to the world but of course also to partners like the European Union.”
During the visit, discussions were held on other forms of renewable energy in the South American country.
Von der Leyen added: “I very much welcome the first steps taken by Chile to provide a clear, predictable and fair framework for companies in the renewables sector as they continue to have liquidity problems.
“I hope and I am confident that you will consider further measures to alleviate the situation of these companies in Chile.
“It is important to maintain existing investments and to attract new ones. This is what we are going to work on together.”