IFC Partners With Grupo Santander To Launch Uruguay’s First Green Hydrogen Project, Backed By $20M Loan

The International Finance Corporation (IFC), a member of the World Bank Group, has announced its first global investment in green hydrogen through a partnership with Grupo Santander to develop the Kahirós project, Uruguay’s pioneering initiative in this field. This project is expected to create employment opportunities and position Uruguay as a regional leader in scalable clean energy solutions. At a time when fewer than five percent of announced green hydrogen projects worldwide have reached the investment stage, this investment reflects IFC’s dedication to supporting clients in accessing diverse energy sources and demonstrates the potential for sustainable energy solutions in emerging markets.

The Kahirós project includes a $20 million green loan from IFC and integrates solar energy, hydrogen production, and electric transport into a single system. Solar power will be used to generate green hydrogen, which will then fuel a fleet of six specialized fuel-cell electric trucks transporting timber to Montes del Plata, one of Uruguay’s leading pulp producers. The initiative is expected to lay the foundation for a new industry that could generate over 30,000 direct jobs by 2040. In addition, it is projected to reduce 870 tons of CO₂ emissions annually, equivalent to removing more than 300 cars from circulation.

Alfonso García Mora, IFC’s Vice President for Europe, Latin America, and the Caribbean, commented that Uruguay has made significant progress in expanding renewable energy sources, and that this project represents an important step toward decarbonizing sectors that are difficult to transition, such as transport. He emphasized that the World Bank Group is committed to supporting pioneering projects that create high-quality jobs and can serve as replicable models throughout Latin America and beyond.

Gustavo Trelles, Country Head of Santander Uruguay, noted that Grupo Santander supports the Kahirós project with full confidence in its transformative potential, and that IFC’s participation underscores the global relevance of the initiative. He highlighted the collaboration as an example of how institutions can work together to lead the energy transition and demonstrate Uruguay’s capacity to contribute to a more sustainable future.

Kahirós is a consortium composed of Uruguayan companies Ventus, Fidocar, and Fraylog, in partnership with Grupo Santander and with financial support from the United Nations’ Renewable Energy Innovation Fund (REIF). The project is expected to begin operations by the end of 2026. As the first integrated green hydrogen solution for freight transport in Uruguay, Kahirós will mark a significant milestone in reducing emissions in the forestry and logistics sectors and will serve as a model for scaling clean energy technologies in other markets.

María José González, Director of the Kahirós Project, stated that contributing to innovation required for a sustainable energy transition is a privilege. She added that the project aims to strengthen Uruguay’s position as a strategic hub for green hydrogen development and future investments, with the goal of establishing Kahirós as a regional and global reference point that shares knowledge and opens new opportunities.

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