The International Finance Corporation (IFC), a member of the World Bank Group, announced its first-ever global investment in green hydrogen on December 3, 2025, partnering with Grupo Santander to develop Kahirós, Uruguay's pioneering green hydrogen project. The initiative creates jobs and positions the country as a regional leader in scalable clean-energy solutions.

Project Structure and Financing

The project includes a USD 20 million green loan from IFC and will integrate solar power, hydrogen production, and electric transport into a single system. Solar energy will be used to produce green hydrogen, which will power a fleet of six specially designed fuel-cell electric trucks transporting timber to Montes del Plata, one of Uruguay's leading pulp producers.

Kahirós is a consortium formed by the Uruguayan companies Ventus, Fidocar, and Fraylog, together 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.

Environmental and Economic Impact

The initiative is expected to lay the foundation for a new industry that could generate over 30,000 direct jobs by 2040 and reduce emissions by 870 tons annually, the equivalent of removing more than 300 cars from the road. As the first integrated green hydrogen solution for freight transport in Uruguay, the project will mark a turning point for emissions reduction in the forestry and logistics sectors.

At a time when fewer than 5 percent of announced green hydrogen projects worldwide have reached the investment stage, this milestone underscores IFC's commitment to its clients in expanding access to diverse energy sources and demonstrates the potential of sustainable solutions in emerging markets.

Industry Leadership and Strategic Vision

Alfonso García Mora, IFC's Vice President for Europe, Latin America and the Caribbean, stated that Uruguay has made remarkable progress in expanding renewable energy sources, and this project represents a major step toward decarbonizing hard-to-abate sectors such as transport. He emphasized that the World Bank Group is committed to supporting pioneering and innovative projects that create high-quality jobs and serve as replicable models across Latin America and beyond.

Gustavo Trelles, Country Head of Santander Uruguay, expressed that Grupo Santander supports Kahirós with full confidence in its transformative potential, and IFC's participation confirms the strength and global projection of this initiative. He described the partnership as reflecting an exemplary synergy between institutions committed to leading the energy transition and demonstrating that Uruguay can help shape the path toward a more sustainable future.

María José González, Director of the Kahirós Project, characterized it as a privilege to contribute to the kind of innovation that a sustainable energy transition requires. She stated that the goal is for Kahirós to become a regional and global reference point that can share lessons learned and open new opportunities, further strengthening Uruguay's position as a strategic hub for the development of this emerging technology and for future investments.

Global Development Context

IFC is the largest global development institution focused on the private sector in emerging markets, working in more than 100 countries and using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record USD 71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.

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