As Colombia’s green hydrogen industry transitions to large-scale industrial applications, banks’ increased understanding and international investment are fast-tracking the country’s low-carbon ambitions, signalling a maturing sector poised for significant growth.
Commercial banks are increasingly turning their attention to green hydrogen projects in Colombia, as the sector gains renewed momentum and moves into a phase focused on practical, large-scale applications. Brayaham Villa, president of the industry association Hidrógeno Colombia, highlighted this shift while speaking at an industry event in Medellín, noting a significant change in the banking sector’s engagement with hydrogen initiatives.
Villa explained that banks, traditionally cautious due to perceived risks, are now actively seeking to understand the details of project structures and revenue models in the hydrogen sector. He said, “They are eager to know more and learn about the environment, because for them the key word is risk. The higher the risk, the higher the interest rate. But sometimes that high risk is only a perception caused by lack of information.” This growing familiarity is leading to a reassessment of risk, which could pave the way for broader financing availability in the near future. Villa optimistically projected that within a year, more banks will be supporting hydrogen projects with less scepticism, thanks to increased knowledge about the sector and project finance.
This financial interest is coinciding with a strategic shift within the hydrogen industry itself. Early efforts focused largely on mobility applications, such as fuel cell electric vehicles, are now giving way to hydrogen uses with clearer demand and stronger business cases, primarily in industrial sectors. Villa noted that developers are turning their attention towards options like ammonia production and heavy transport, which present greater potential for scale and impact. “All of this is changing at a very high speed and the conversation we have one year from now will probably be very different,” he added.
Supporting this optimistic outlook are several major moves in Colombia’s renewable energy landscape that reinforce the country’s green hydrogen ambitions. Brookfield Renewable, alongside Qatar Investment Authority, has announced plans to invest up to $1 billion to increase its stake in Colombian energy firm Isagen S.A. This investment aims to bolster renewable energy efforts, including green hydrogen projects, aligning with Colombia’s broader sustainable energy goals.
Meanwhile, the state-owned energy company Ecopetrol is advancing its green hydrogen production capabilities with a proposed $28.5 million plant at its Cartagena refinery. This facility is set to produce 800 tonnes of green hydrogen annually, positioning it as the largest of its kind in Latin America and a key asset in Colombia’s cleaner energy transition. Ecopetrol is also diversifying its renewable portfolio through the $50 million acquisition of the Windpeshi wind power project in La Guajira, which will add 205 megawatts of capacity to support the company’s energy self-consumption and further strengthen Colombia’s renewable capacity.
On the financing front, international development institutions underscore the increasing support for Colombia’s low-carbon ambitions. The World Bank recently approved a $750 million loan aimed at enhancing the country’s resilience to climate change while fostering renewable energy development, including green hydrogen. Similarly, the Inter-American Development Bank (IDB) continues its role in accelerating Colombia’s clean energy transition by providing technical assistance for green hydrogen projects, focusing on decarbonising sectors that are typically hard to electrify.
Additionally, IDB Invest has backed green mobility initiatives by subscribing to Banco Finandina’s sustainable bond issuance to fund electric and hybrid vehicles, as well as micromobility solutions, reinforcing the broader push for clean technologies that complement hydrogen’s industrial application.
Taken together, these developments signal a maturing hydrogen economy in Colombia, supported by growing financial appetite, strategic industrial focus, and strong international backing. For industrial decarbonisation professionals, Colombia’s evolving landscape exemplifies how emerging hydrogen markets can attract commercial finance by shifting towards scalable, industrial applications and transparent, risk-informed project financing. The sector’s rapid evolution sets a precedent for market maturity that could be instructive for similar emerging hydrogen economies worldwide.
- https://www.bnamericas.com/en/features/banks-eye-colombian-hydrogen-projects – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/brookfield-renewable-invest-up-1-billion-isagen-2025-07-18/ – Brookfield Renewable announced plans to invest up to $1 billion to increase its stake in Colombian energy company Isagen S.A. to approximately 38%. This investment, co-funded by Qatar Investment Authority (QIA), aims to enhance Isagen’s renewable energy projects, including green hydrogen initiatives, aligning with Colombia’s growing focus on sustainable energy solutions.
- https://www.reuters.com/business/energy/colombias-ecopetrol-build-green-hydrogen-plant-cartagena-refinery-2024-12-02/ – Colombia’s state-owned energy company, Ecopetrol, plans to construct a green hydrogen plant at its Cartagena refinery for approximately $28.5 million. The facility will produce 800 tonnes of green hydrogen annually, making it the largest in Latin America, and supports Colombia’s transition to cleaner energy sources.
- https://www.reuters.com/business/energy/colombias-ecopetrol-buys-wind-power-project-enel-2025-07-07/ – Ecopetrol acquired the Windpeshi wind power project from Enel for $50 million. Located in La Guajira province, the project will have a capacity of 205 megawatts and contribute to Ecopetrol’s energy self-consumption, supporting Colombia’s shift towards renewable energy sources.
- https://www.reuters.com/sustainability/sustainable-finance-reporting/world-bank-approves-750-mln-climate-change-loan-colombia-2024-04-01/ – The World Bank approved a $750 million loan to Colombia to enhance the country’s resilience against climate change. The loan aims to promote renewable energy development, including green hydrogen, and supports the electrification of urban transportation systems.
- https://idbinvest.org/en/news-media/idb-invest-promotes-green-mobility-colombia-through-sustainable-bond – IDB Invest subscribed to Banco Finandina S.A.’s first sustainable bond issuance, totaling COP 165 billion (approximately $39.3 million). The bond aims to finance green and social projects in Colombia, focusing on electric and hybrid vehicles, as well as electric micromobility solutions.
- https://www.iadb.org/en/project/CO-T1731 – The Inter-American Development Bank (IDB) is providing technical assistance to Colombia to accelerate its clean and inclusive energy transition. This support includes the development of green hydrogen projects to decarbonize sectors that are difficult to electrify.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative appears to be original, with no evidence of prior publication. The report includes recent developments, such as Brookfield Renewable and Qatar Investment Authority’s $1 billion investment in Isagen S.A., and Ecopetrol’s proposed $28.5 million green hydrogen plant at its Cartagena refinery. These events are recent and not found in earlier publications. The presence of updated data alongside older material suggests a higher freshness score but should be flagged. ([apidocs.bnamericas.com](https://apidocs.bnamericas.com/?utm_source=openai))
Quotes check
Score:
9
Notes:
The direct quotes attributed to Brayaham Villa, president of Hidrógeno Colombia, do not appear in earlier material. This suggests the content is potentially original or exclusive. However, without access to the original source, it’s challenging to confirm the authenticity of these quotes.
Source reliability
Score:
7
Notes:
The narrative originates from BNamericas, a reputable organisation known for its coverage of Latin American business and industry news. However, without access to the original source, it’s challenging to confirm the authenticity of the quotes attributed to Brayaham Villa.
Plausability check
Score:
8
Notes:
The claims about increased financial interest in Colombia’s green hydrogen projects align with recent developments in the renewable energy sector. The reported investments and proposed projects are plausible and consistent with the country’s sustainable energy goals. However, without access to the original source, it’s challenging to confirm the authenticity of the quotes attributed to Brayaham Villa.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent developments in Colombia’s green hydrogen sector, including significant investments and proposed projects. While the content appears original and plausible, the authenticity of the quotes attributed to Brayaham Villa cannot be confirmed without access to the original source. Therefore, the overall assessment is ‘OPEN’ with a medium confidence level.
