Citing scale of hydrogen project-financing needs, IDB chief underscores importance of collaboration

Development bank IDB said it was committed to helping Latin America become a global green hydrogen powerhouse and underscored to industry stakeholders the importance of joint financing initiatives.     

IDB is working on multiple fronts in the region, including financing and industry-roadmap creation.

In the sphere of project financing support, IDB is contributing US$400mn to a pioneering US$1bn facility built by Chilean state development agency Corfo and involving injections from several other multilaterals. Due to launch by year-end, the facility’s objective is to help derisk projects, trim the cost of capital and potentially help bring in third party financial backers.  

“We will finance, and we can finance with partners,” IDB president Ilan Goldfajn said during industry conference H2LAC 2024, being held this week in Chilean capital Santiago. “We have realized that, alone, we cannot do this.” He added: “We need scale for the task we have today.”

Globally, earlier this year the leaders of 10 multilateral development banks, IDB among them, agreed to deepen collaboration to work more effectively as a system.

On the supply side, many projects have multiple stakeholders, given the complexity of green hydrogen initiatives and capital requirements.

Goldfajn sees Chile – where around 70 projects with a combined multibillion-dollar price tag have been publicly announced – as a green hydrogen trailblazer and from where other nations advancing along the avenue can learn lessons. The country, benefiting from world-class renewable energy resources, can become a “global leader,” in green hydrogen, Goldfajn said, adding that challenges also exist.

GREEN HYDROGEN PROJECTS TO START CONSTRUCTION OR OPERATION STAGES IN THE NEXT QUARTERS

 

Project	Stage	Capex(US$ mn)
H2 Magallanes project	Environmental & Social evaluation(Q4 2024),Under construction(Q1 2026),In operation(Q1 2028)	15000
Green Energy Park Piauí	Under construction(Q4 2024),In operation(Q4 2026)	10538
Pampas project (Punta Colorada)	Under construction(Q3 2025),In operation(Q4 2030)	8400
Gente Grande	Under construction(Q4 2025),In operation(Q4 2028)	8000
Golden City biorefinery	Under construction(Q4 2024),Ramp-up/Commissioning(Q1 2027),In operation(Q4 2030)	7700
Ceará Green Hydrogen HUB (Pecém)	Ramp-up/Commissioning(Q4 2025),In operation(Q4 2030)	6950
Base One Green Hydrogen Plant	In operation(Q4 2025)	5400
Fortescue Green Hydrogen Plant	In operation(Q4 2027)	5000
HNH Energy	Under construction(Q4 2025),In operation(Q4 2028)	5000
Pernambuco Green Hydrogen Plant (Suape)	Ramp-up/Commissioning(Q4 2025),In operation(Q4 2032)	4162
E-methanol plant in Paysandú (eFuels Project)	Under construction(Q4 2025),In operation(Q4 2027)	3985
Vientos Magallánicos	Under construction(Q4 2028),In operation(Q4 2030)	3000
Hoasis	Environmental & Social evaluation(Q4 2024),Under construction(Q4 2027),Ramp-up/Commissioning(Q4 2028)	3000
Los Amigos del Verano (Green Hydrogen)	Under construction(Q4 2025),Ramp-up/Commissioning(Q4 2027),In operation(Q4 2033)	2900
Volta Project - Green Hydrogen and Ammonia Plant	Pre-construction(Q3 2025),Under construction(Q1 2026),Ramp-up/Commissioning(Q4 2027),In operation(Q3 2030)	2500
Cactus Green Hydrogen Plant	Tendering(Q4 2024),In operation(Q4 2027)	2000
Marengo I	In operation(Q4 2027)	1100
Pauna Greener Future	In operation(Q4 2027)	560
Green Hydrogen Production Plant for the Calama Mining District	Under construction(Q4 2025),Ramp-up/Commissioning(Q4 2026),In operation(Q1 2032),Closure(Q4 2061)	423
Villeta Project Expansion (Phase 1)	Under construction(Q3 2024),Ramp-up/Commissioning(Q1 2026),In operation(Q1 2027)	365
NewGen Carbon-Neutral & Green Hydrogen Project	In operation(Q4 2027)	350
Energía Los Cabos	Under construction(Q2 2024),In operation(Q4 2025)	330
West Guiana Power Station (CEOG)	Ramp-up/Commissioning(Q4 2024),In operation(Q4 2026)	200
Renewstable Barbados Project (Agrivoltaic Hydrogen Power Project)	Under construction(Q4 2024),In operation(Q1 2027)	165
Green Hydrogen Project at Barrancabermeja Refinery	Under construction(Q4 2024),In operation(Q1 2026)	100
Genesis project	In operation(Q4 2025)	70
Delicias Solar photovoltaic plant for the production of green hydrogen	Under construction(Q4 2024),In operation(Q4 2026)	68
HyPro Aconcagua	In operation(Q4 2024)	50
HyEx - Green Hydrogen Production (HyEx 1)	Ramp-up/Commissioning(Q2 2025),In operation(Q3 2025)	47
Green Hydrogen Production Plant in Quintero	Pre-construction(Q1 2025),Under construction(Q2 2025),Ramp-up/Commissioning(Q1 2026),In operation(Q2 2026)	30
Adelaida (H2V)	In operation(Q4 2024)	10
Green Hydrogen Pilot Project of International Neoenergía Iberdrola in Puerto de Suape	In operation(Q4 2024)	4
Hydrogen plant in Pecém complex	Ramp-up/Commissioning(Q4 2026)	ND
Green Hydrogen Plant in São Paulo (White Martins)	Early design & engineering(Q2 2024),In operation(Q4 2025)	ND
Green Hydrogen Production Plant - Horizonte de Verano	Ramp-up/Commissioning(Q2 2027),In operation(Q4 2032)	ND
Faro del Sur green hydrogen plant	In operation(Q4 2025)	ND
H2V CAP	Ramp-up/Commissioning(Q4 2025)	ND
H1 Magallanes	In operation(Q4 2028)	ND
Antofagasta Mining Energy Renewable (Amer)	In operation(Q4 2025)	ND
CFE green hydrogen pilot project	In operation(Q4 2024)	ND

Typical hurdles that need addressing to support development of a large-scale industry surround areas including production costs, offtake, water supply, and infrastructure.  

Meanwhile, in terms of tweaking its strategy in the region against a backdrop of climate change challenges and global clean energy provision opportunities, Goldfajn, in response to a question from BNamericas, said work had started, citing IDB’s new institutional strategy, IDBImpact+.

Designed to achieve greater development results and reach, the initiative was approved at IDB’s annual meetings in March by the board of governors. 

Goldfajn said: "[Latin America] is where we're going to generate global solutions, and with this we're going to transform the region. Why? Because we’re going to generate investment, we’re going generate jobs and, with this, we’re going to be able to return to growth.” He added that having stronger tax revenue flows would permit states to better address social demands. 

The overall region, particularly South America, is seen holding much potential, given factors such as high renewables penetration and available land.

“I truly believe that Latin America could be the powerhouse of the world. You could replace the Middle East as an energy provider,” said Bart Biebuyck, CEO of developer Green Energy Park, which has a 10GW green hydrogen and green ammonia project in Brazil that could get a final investment decision next year.

Other regions with renewables resources and land for the sprawling clean energy plants needed are in the race to pull in investment, among them North America, Australia and the Middle East.