The governments of Uruguay and Argentina are seeking to ease tensions surrounding HIF Global’s green hydrogen and synthetic fuel plant project in the Paysandú Department on the Uruguay River. The dispute escalated after Uruguayan President Yamandú Orsi said that a criminal complaint over the project had been withdrawn, but representatives of the Argentine side denied this, MercoPress reports.
The project is estimated to cost about $5.4 billion. It is presented as the largest foreign investment in Uruguay’s history. The facility plans to produce e-fuels from green hydrogen obtained through renewable energy and carbon dioxide from biomass chains. The project provides for around 3,000 direct jobs, while the first phase is estimated at about $1 billion.
Relocation of the site
The plant was initially planned to be located about three kilometers from the Argentine city of Colón in Entre Ríos Province, opposite its waterfront. Entre Ríos Governor Rogelio Frigerio and other representatives of the Argentine side objected because of the possible visual impact on tourism and pollution risks for the river.
Following bilateral talks, including two meetings at Uruguay’s Foreign Ministry in November and April, the sides agreed to move the plant to a site owned by the state oil company Ancap.
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Differences over filings
On Friday in Paysandú, Orsi described the alleged withdrawal of the criminal complaint as positive diplomatic news. However, Argentine federal prosecutor Josefina Minatta said that she had not withdrawn her filing and would maintain it until Uruguay responds to her requests concerning possible pollution. Lawmaker Guillermo Michel also said that his preventive civil lawsuit remains in force.
Uruguayan presidential secretary Alejandro Sánchez explained the situation as a misunderstanding. According to him, it was not a court complaint, but an appeal by Colón’s deputy mayor to the support committee for the Escazú Agreement, a regional treaty on access to environmental information. The municipality of Colón said it had not filed a complaint, but had only requested access to materials in the Uruguayan case and ended further consultations on August 25.
Sánchez noted that the use of the Uruguay River is governed by a bilateral treaty, but decisions within national territory are sovereign. The commercial agreement on the project has not yet been finalized: the parties still need to agree on infrastructure ownership, the distribution of investments, and the price of electricity to be supplied by the state company UTE.
