IFC selects Uruguay for its first-ever global green hydrogen investment

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

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.

The project includes a $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.

 The initiative is expected to lay the foundation for a new industry with the potential to generate over 30,000 direct jobs by 2040 -and reduce 870 tons of CO₂ annually, the equivalent of removing more than 300 cars from the road.

“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,” said Alfonso García Mora, IFC’s Vice President for Europe, Latin America and the Caribbean. “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.”

“Grupo Santander supports Kahirós with full confidence in its transformative potential, and IFC’s participation confirms the strength and global projection of this initiative. This partnership reflects 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,” said Gustavo Trelles, Country Head of Santander Uruguay.

Kahirós -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)- is expected to begin operations by the end of 2026. 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 and serve as a model for scaling clean technologies in other markets.

“It is a privilege to contribute to the kind of innovation that a sustainable energy transition requires. As we said when the project was launched, we hope this will further strengthen Uruguay’s position as a strategic hub for the development of this emerging technology and for future investments. Our goal is for Kahirós to become a regional and global reference point—one that can share lessons learned and open new opportunities,” said María José González, Director of the Kahirós Project.