The International Finance Corporation (IFC), a member of the World Bank Group, has announced its first global investment in green hydrogen, partnering with Spain’s Santander Group to develop Kahirós, the first project of its kind in Uruguay. The initiative aims to create jobs and position the country as a regional leader in scalable clean energy solutions.
At a time when less than 5% of green hydrogen projects worldwide have reached the final investment stage, this milestone underscores IFC’s commitment to expanding access to diverse energy sources and highlights the potential for sustainable, scalable technologies in emerging markets.
The project will be financed through a US$20 million green loan from IFC and will integrate solar PV generation, green hydrogen production and electric freight transport. Solar energy will power an electrolyser that produces green hydrogen to supply a fleet of six trucks specifically designed to transport timber to Montes del Plata, a major Uruguayan pulp mill and one of the country’s largest industrial exporters.
This system is expected to cut 870 tonnes of CO₂ emissions per year—equivalent to removing more than 300 cars from the road—and lay the foundation for a new industry with the potential to create over 30,000 direct jobs by 2040.
“Uruguay has made remarkable progress in scaling up renewable energy, and this project represents an important step in the decarbonisation of hard-to-abate sectors such as transport,” said Alfonso García Mora, IFC Vice President for Europe, Latin America and the Caribbean. “The World Bank Group is committed to supporting pioneering and innovative projects that create quality jobs and serve as replicable models across Latin America and beyond.”
Gustavo Trelles, Country Head of Santander Uruguay, added: “Santander is driving Kahirós because we are convinced of its transformative potential, and IFC’s participation confirms the strength and global relevance of this initiative. This partnership reflects exemplary synergy between institutions committed to leading the energy transition and demonstrating that Uruguay can set the pace towards a more sustainable future.”
Kahirós is a consortium formed by Uruguayan companies Ventus (renewable energy developer), Fidocar (automotive sector) and Fraylog (logistics operator), together with Santander Group and with financial backing from the UN’s Renewable Energy Innovation Fund (REIF). Operations are scheduled to begin in late 2026. As the first end-to-end green hydrogen solution for freight transport in Uruguay, it is expected to significantly reduce emissions in the logistics and forestry sectors and provide a model for the expansion of these clean technologies in other markets.
“We are proud to contribute to the innovation needed for a sustainable energy transition. As we said when the project was launched, this is another step to strengthen Uruguay’s position as a strategic hub for the development of this new technology and for attracting further investment. Our commitment is for Kahirós to become a regional and global benchmark from which to share lessons learned and new opportunities,” said María José González, Director of the Kahirós Project.
| Component | Description | Relevance |
|---|---|---|
| Solar PV generation | Dedicated solar array to power hydrogen production | Supports renewable energy integration |
| Green hydrogen production | Electrolyser supplying six freight trucks | Decarbonises heavy transport |
| Electric truck fleet | Purpose-built for timber logistics | Reduces emissions in the forestry supply chain |
| Financing | US$20 million IFC green loan + Santander + UN REIF support | Demonstrates bankability of emerging-market H₂ projects |
| Impact | 870 tCO₂ avoided annually; 30,000 potential jobs by 2040 | Positions Uruguay as a regional clean-tech leader |
