HIF Global Uruguay Project Faces Deadline Extension as Energy Price Standoff Continues, Site Relocation Under Consideration

The Uruguayan government and multinational HIF Global agreed to a three-month extension of their memorandum of understanding, pushing the deadline from March 31 to June 30, 2026, as parties continue negotiating terms for what would become Uruguay’s largest-ever foreign investment. The December 2025 memorandum had stipulated a 90-day period to reach an investment contract, but key agreements remain unsigned. Both parties maintain the target of finalizing the investment decision by end-2026, with first shipments planned for late 2029.

Energy pricing negotiations with state utility UTE constitute the primary obstacle, representing approximately 70 percent of total project costs according to HIF Global CEO Martín Bremermann, who identified this issue as the main negotiation bottleneck. HIF’s 2023 business plan, submitted to win ALUR’s carbon dioxide capture tender, established $40 per megawatt-hour as the baseline price. UTE has countered with higher pricing proposals, stalling agreement. Company sources indicate energy pricing must be resolved by end-May 2026 to meet financing timelines and preserve the year-end investment decision deadline.

The project envisions constructing and operating an e-fuels plant producing approximately 880,000 tonnes annually from renewable energy, green hydrogen, and biogenic carbon dioxide. HIF plans to build wind and solar generation facilities capable of producing 2.3 gigawatts, equivalent to Uruguay’s peak national consumption. However, the company requires UTE agreements for initial-phase energy supply and long-term grid stability.

Paysandú Intendant Nicolás Olivera disclosed April 8 that authorities are actively considering relocating the facility to another site within Paysandú department. Olivera stated the government views relocation favorably, with an Ancap-owned property under evaluation. The intendant indicated the new location must offer equivalent or superior logistical advantages while addressing concerns raised by Argentina’s Entre Ríos provincial authorities about the original site facing Colón city. Olivera characterized relocation as a potential win-win scenario if it provides positive externalities while maintaining project viability.

Beyond UTE negotiations, HIF must finalize its carbon dioxide supply agreement with ALUR, which had also received a March extension. The company has submitted its Environmental Impact Assessment to the national environmental quality directorate, advancing regulatory authorization requirements.