
The governments of Uruguay and Argentina are trying to contain tensions surrounding the green hydrogen and synthetic fuels plant that HIF Global plans to build in the Uruguayan department of Paysandú, on the Uruguay river, after a statement by President Yamandú Orsi drew three consecutive denials from the Argentine side.
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A federal court in the Argentine city of Concepción del Uruguay on Friday ordered a series of environmental studies and requested information from Uruguayan agencies after accepting a lawsuit against the Uruguayan state and multinational HIF Global over a green hydrogen plant project in Paysandú, in a new source of bilateral tension that echoes the Botnia pulp mill conflict of the early 2000s.

Uruguay's government is considering relocating within the department of Paysandú the synthetic fuels plant planned by multinational HIF Global, in an effort to simultaneously defuse diplomatic tensions with Argentina and advance what would be the largest private investment in the country's history, estimated at $5.385 billion in its final phase.

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.