Uruguay is breaking new ground in clean energy with the launch of the Kahirós green hydrogen project, the country’s first large-scale initiative to produce and use green hydrogen for heavy transport. Launched in December 2025 with over $30 million in investment, the project is financed by Grupo Santander, the International Finance Corporation (IFC), and the UN-backed Renewable Energy Innovation Fund (REIF). Green hydrogen, produced from water using renewable energy, offers a sustainable solution for electricity, heating, cooling, and transport, yet fewer than 5 percent of global projects have reached the investment stage, highlighting Uruguay’s pioneering role.
The UN in Uruguay has mobilized resources through the Renewable Energy Innovation Fund, supported by the UN Joint SDG Fund and implemented by UNIDO, UNDP, and UN Women under the Resident Coordinator’s leadership. This public–private partnership provides flexible loans, technical assistance, and access to knowledge and technology, collaborating with local banks to support SMEs and corporates while promoting gender-responsive investments. By derisking first movers and aligning with public policy, the Fund is strengthening Uruguay’s clean-tech ecosystem and advancing inclusive finance in the energy transition.
The Kahirós project combines solar generation, hydrogen production, and a fleet of hydrogen trucks to decarbonize Uruguay’s forestry sector. The IFC contributed a $20 million green loan to integrate a 4.8 MW zero-carbon solar plant with the onsite electrolyzer, along with hydrogen compression and rapid refueling infrastructure. The project will operate six hydrogen trucks and aims to produce 77 tons of green hydrogen annually, reducing CO₂ emissions by up to 870 tons, roughly equivalent to removing 300 cars from circulation. UNDP and UNIDO-led feasibility studies have helped reduce uncertainties for policymakers, laying the foundation for future hydrogen projects in Uruguay.
The success of Kahirós reflects coordinated action between the public and private sectors, facilitated by the UN and the Renewable Energy Innovation Fund. Uruguay’s government has been instrumental through fiscal incentives and the 2023 National Roadmap for Green Hydrogen and Derivatives, signaling strong national commitment. By fostering dialogue and strategic coherence among Santander, IFC, and government stakeholders, the UN helped create an enabling environment for this landmark project.
Beyond national impact, Kahirós sets a blueprint for green hydrogen in the Global South. With global demand projected to reach over 500 million tonnes annually by 2050 and unlock more than $11 trillion in investment, Uruguay demonstrates how middle-income countries can lead in sustainable industry. The project showcases the potential of combining government vision, UN support, and private sector innovation to translate ambition into tangible progress in clean energy and industrial decarbonization.
