MercoPress. South Atlantic News Agency

Ancap and HIF Global sign agreement for green hydrogen plant in Uruguay

Ancap's interim president, Diego Durand, described the day as “historic”.

Uruguayan state-owned oil company Ancap, through Alcoholes del Uruguay (ALUR), signed an agreement with HIF Global to implement an ambitious green hydrogen and synthetic fuels project in Paysandú. The investment, estimated at US$6 billion, aims at producing 700,000 tons per year of renewable fuels, with a significant impact on the local and regional economy.

Ancap's interim president, Diego Durand, described the day as “historic”. “It is a bigger project than that of UPM and will mean development for Paysandú and the whole country,” he said. According to HIF, the plant could generate more than 3,000 jobs during its construction and 300 permanent jobs.

The project includes the provision of biogenic CO2 by ALUR, which will supply 150,000 of the 900,000 tons required annually. Ancap highlighted the environmental benefits, noting that the plant will reduce greenhouse gas emissions and decarbonize more than 150,000 vehicles with its electronic fuel.

The signing comes on the heels of political tensions. The resignation of Ancap's former president, Alejandro Stipanicic, marked the week, after disagreements with the Executive Branch over the state's participation in the project. Finally, Ancap gave up its option of up to 30% participation, a decision criticized by authorities of the next government, who described the measure as “unjustified” and “a loss for the State”.

Currently, the project awaits the resolution of the change of land use and environmental viability. Durand assured that progress will be made with the Environmental Impact Study and the detailed engineering of the plant. If completed, HIF Global's green hydrogen plant will position Uruguay as a reference in sustainable energy in the region.