Montevideo, December 3, 2025 — The International Finance Corporation (IFC), a member of the World Bank Group, announced its first-ever global investment in green hydrogen, partnering with the Santander Group to develop Kahirós, the first project of its kind in Uruguay. This initiative will create jobs and position the country as a regional leader in scalable clean energy solutions.
At a time when fewer than 5 percent of green hydrogen projects announced worldwide have reached the investment stage, this milestone underscores IFC’s commitment to helping its clients expand access to diverse energy sources and demonstrates the potential for sustainable, scalable solutions in emerging markets.
The project will include a US$20 million green loan from IFC and will integrate solar energy, hydrogen production, and electric transport into a single system. Solar power will be used to produce green hydrogen, which will fuel a fleet of six specially designed trucks that will transport wood to Montes del Plata, one of the country’s major pulp producers.
This will reduce 870 tons of CO₂ per year—equivalent to taking more than 300 cars off the road—and lay the foundations for a new industry with the potential to generate over 30,000 direct jobs by 2040.
“Uruguay has made remarkable progress in expanding renewable energy sources, and this project represents an important step toward decarbonizing hard-to-abate sectors such as transport,” said Alfonso García Mora, IFC’s Regional 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 in Latin America and beyond.”
“At Santander Group, we are driving Kahirós with full confidence in its transformative potential, and IFC’s involvement confirms the strength and global projection of this initiative. This partnership reflects exemplary synergy between institutions committed to leading the energy transition and showing that Uruguay can chart the course toward a more sustainable future,” said Gustavo Trelles, Country Head of Santander Uruguay.
Kahirós—a consortium made up of Uruguayan companies Ventus, Fidocar, and Fraylog, together with the Santander Group and with financial support from the United Nations’ Renewable Energy Innovation Fund (REIF), developed under a Joint SDG Fund programme, will begin operations at the end of 2026. As the first integrated green hydrogen solution for freight transport in Uruguay, it will mark a milestone in reducing emissions in the logistics and forestry sectors and serve as a model for expanding these clean technologies in other markets.
“It is an honor to take part in the innovation needed for a sustainable energy transition. As we said when the project was launched, this is another contribution that we hope will strengthen Uruguay’s position as a strategic country for the development of this new technology and many other investments. Our commitment is for Kahirós to become a regional and global reference point from which to share learnings and opportunities,” said María José González, Director of the Kahirós Project.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $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.
Original publication: https://www.ifc.org/es/pressroom/2025/ifc-selects-uruguay-for-its-first-ever-global-green-hydrogen-investment
Note:
All joint programmes of the Joint SDG Fund are led by UN Resident Coordinators and implemented by the agencies, funds and programmes of the United Nations development system. With sincere appreciation for the contributions from the European Union and Governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, The Netherlands, Norway, Poland, Portugal, Republic of Korea, Kingdom of Saudi Arabia, Spain, Sweden, Switzerland for a transformative movement towards achieving the SDGs by 2030.
