The green hydrogen produced will fuel a dedicated fleet of six electric trucks designed to transport wood to Montes del Plata, one of Uruguay’s largest pulp plants. Total project costs are estimated at $38.6 million. Kahirós is expected to commence operations by late 2026 and establishes a replicable model for sustainable logistics in Latin America. IFC highlighted the project’s potential to reduce emissions in hard-to-abate sectors while generating direct employment, projecting the creation of over 30,000 jobs in Uruguay’s emerging green hydrogen industry by 2040.
The project consortium includes Uruguayan companies Ventus, Fidocar, and Fraylog, in partnership with Grupo Santander and with financial backing from the United Nations’ Renewable Energy Innovation Fund (REIF). IFC Vice President Alfonso García Mora emphasized the initiative’s role in solidifying Uruguay’s renewable energy leadership and providing a scalable regional blueprint. Santander Uruguay corroborated the investment as validation of Kahirós’ global viability and sustainability standards.
This financing marks a significant milestone in supporting Latin America’s green hydrogen value chain, representing a strategic shift that leverages renewable solar energy for hydrogen production and clean electric transport to drive decarbonization within industrial supply chains. The project underscores IFC’s commitment to innovative climate finance instruments targeting integrated renewable energy and transport solutions. Kahirós is poised to catalyze further green hydrogen projects regionally, expanding clean energy markets and sustainable employment opportunities within Uruguay and beyond.
This article was curated and published as part of our South American energy market coverage.
