EU, German banks eye H2-focused fund for Argentina

Argentina could gain a €200mn ($216mn) hydrogen-focused funding to spur investment in the country, EU commissioner for energy Kadri Simson has said.

"We're looking into how we can replicate [in Argentina] a €200mn funding platform currently being rolled out in Chile for developing projects for producing and using renewable hydrogen," Simson said this week.

The European Investment Bank and German development bank KFW have been leading the work, she added, but she gave no firm timeline for the idea.

External sources of public funding could be vital given Argentina's new leadership has told the sector it plans to provide a clear framework but to expect no public funding as the administration is short on money. Argentina plans to this month present legislation to develop its hydrogen industry.

The same European institutions have previously committed €200bn towards a $1bn platform in neighbouring Chile which plans to open applications in the third quarter of 2024. It is unclear if other global financial institutions may rally around the Argentina scheme as they have done in Chile.

So-called blended finance funds have gained traction over the past year to de-risk projects and unlock investment in developing countries. Similar platforms have been launched in Namibia and South Africa.

By Aidan Lea