Uruguay Unveils $38 Million Green Hydrogen Project to Propel Net Zero Goals

Uruguay embarks on a $38M green hydrogen project, Kahirós, in Fray Bentos, supporting net-zero goals. Expected to cut CO₂ emissions by 870t annually, it’s a bold step in Uruguay’s renewable energy journey.

Uruguay has officially launched its first green hydrogen initiative, the Kahirós project, with an investment of $38 million. Scheduled to begin operations in 2026, this state-of-the-art hydrogen plant will be situated in Fray Bentos, the capital of the Río Negro Department in southwestern Uruguay. The Kahirós facility, a collaborative effort among various energy and transport companies, is part of Uruguay’s ambitious goal to reach net zero emissions and invigorate its renewable energy sector.

Sustainable Infrastructure and Partnerships Powering Kahirós

The Kahirós project will encompass 8,000 solar panels, a 2-megawatt electrolyzer capable of producing 36 kilograms of hydrogen per hour, and a dedicated fueling station for heavy-duty trucks. The hydrogen produced will power six trucks operated by Montes del Plata, a forestry group managing a pulp mill. Key partners in the project include renewable energy firm Ventus, fuel provider Fidocar, and transportation company Fraylog, with financial backing from Spain’s Santander Group.

Projected Impact and Benefits of Uruguay’s Hydrogen Economy

In its initial stage, Kahirós aims to produce 77 tonnes of green hydrogen annually, consuming 7.2 gigawatt-hours of energy and using 4,200 liters of water per day. Government estimates indicate that the project will prevent around 870 tonnes of CO₂ emissions each year. Additionally, the project is anticipated to advance Uruguay’s hydrogen strategy, which envisions 18 GW of renewable energy, 9 GW of electrolysers, and an estimated 1 million tonnes of annual hydrogen production by 2040. The hydrogen economy could generate $1.3 billion in exports, underscoring Uruguay’s vision of economic and environmental sustainability.