The proposed relocation would place the facility on a 48-hectare site owned by state oil company Ancap in Nuevo Paysandú, distancing it from the Uruguay River border. Argentine officials including Entre Ríos province authorities and President Javier Milei’s government had lodged formal objections to the original location, filing legal actions in various tribunals over potential environmental and visual impacts. Argentine Foreign Minister Quirno praised the resolution, stating on social media that dialogue and diplomacy proved the best path for resolving sensitive bilateral issues.
However, a letter dated August 21 from HIF Global CEO Martín Bremermann to Uruguay’s Environment Ministry director Alejandro Nario contradicts the government’s position. The correspondence states the company continues analyzing a potential relocation discussed with the executive branch and negotiating the investment agreement with the national government. The letter emphasizes in bold text that no definitive or formally adopted decision exists regarding the plant’s future location.
The disconnect has practical consequences for project advancement. The Environment Ministry informed HIF Global in mid-August that the environmental authorization process had been interrupted pending definition of the final configuration and location, since relocation would substantially modify the receiving environment’s characteristics. HIF Global responded by requesting suspension of technical procedures that could become unnecessary or lose validity if a new location is confirmed.
The project represents a planned USD 5.3 billion investment to produce 880,000 tons of synthetic e-fuels, with the first phase valued at USD 1 billion. Initial exports are scheduled for 2029 targeting Asian and European markets. Economy Minister Gabriel Oddone told Parliament the government is coordinating efforts through state energy company UTE and the economy, industry and environment ministries to ensure the project succeeds, stating any failure should not result from government responsibility or mismanagement.
Open negotiations on energy pricing between HIF Global and the executive branch remain unresolved alongside the location question, creating uncertainty around what would constitute Uruguay’s largest foreign investment in history.
This article was curated and published as part of our South American energy market coverage.
