Argentine Governor Rogelio Frigerio led the campaign for relocation, citing fears of repeating conflicts similar to the Botnia pulp mill dispute that strained bilateral relations in previous years. Frigerio emphasized his support for the investment in Uruguay while insisting it should not harm Entre Ríos employment and economic development. Paysandú Mayor Nicolás Olivera initially leaked the possibility of relocation before official confirmation arrived. Colón Mayor José Luis Walser welcomed the announcement alongside provincial authorities.
The agreement activates consultation mechanisms established under the Uruguay River Statute signed in the 1960s, which requires either country to notify the other before taking actions affecting the shared waterway. Lubetkin committed to informing the Administradora del Rio Uruguay Commission (CARU) once Uruguay finalizes the definitive project location and completes environmental impact assessments. Argentine officials expressed satisfaction that Colón was incorporated into the project’s area of influence for environmental studies.
HIF Uruguay signed a memorandum of understanding with the Uruguayan government and submitted terms of reference for environmental impact studies currently under review by Uruguay’s Environment Ministry. The company declined to comment on the relocation decision through its usual spokespersons. The joint statement emphasized both countries maintained fluid and transparent dialogue on the matter within their broader fraternal relationship. The $5.8 billion investment would represent one of the largest foreign capital injections into Uruguay’s economy, making the site selection politically sensitive for both governments while the regional green hydrogen sector watches for signals on cross-border project dynamics.
This article was curated and published as part of our South American energy market coverage.
