The International Finance Corporation (IFC), part of the World Bank Group, has chosen Uruguay for its first global investment in green hydrogen, partnering with Grupo Santander to develop Kahirós—Uruguay’s first major project in the sector. The initiative is set to generate new jobs and position the country as a regional leader in scalable clean energy technologies.
In a global landscape where fewer than 5% of green hydrogen projects have progressed to actual investment, this milestone underscores IFC’s commitment to accelerating diverse and sustainable energy solutions, especially in emerging markets.
The project will be supported by a US$20 million green loan from IFC and will integrate solar power, hydrogen production, and electric transportation into a unified system. Solar energy will generate green hydrogen to fuel a fleet of six specialized trucks transporting timber to Montes del Plata, one of Uruguay’s leading pulp mills. This shift is expected to cut carbon emissions by 870 tons annually—the equivalent of removing over 300 cars from circulation—and pave the way for an industry projected to generate more than 30,000 direct jobs by 2040.
“Uruguay has made remarkable progress in renewable energy expansion, and this project is a critical step in decarbonizing hard-to-abate sectors like transport,” said Alfonso García Mora, IFC Vice President for Europe, Latin America and the Caribbean. He emphasized that the World Bank Group is committed to supporting innovative models that create quality employment and can be replicated across Latin America and beyond.
Gustavo Trelles, Country Head of Santander Uruguay, highlighted the strong collaboration behind the project: “This alliance reflects an exemplary synergy between institutions committed to leading the energy transition and demonstrates that Uruguay can chart the course toward a more sustainable future.”
Kahirós is led by a consortium including Uruguayan companies Ventus, Fidocar and Fraylog, in partnership with Grupo Santander and backed financially by the United Nations Renewable Energy Innovation Fund (REIF). The initiative is expected to begin operations in late 2026 and will become Uruguay’s first comprehensive green hydrogen solution for freight transport, setting a precedent for broader deployment of clean logistics and forestry-sector technologies.
María José González, Director of the Kahirós Project, called the work a point of national pride, noting hopes that it will make Uruguay a strategic hub for new technology and future investment and become a regional and global reference point for sustainable energy innovation.
