Argentine federal prosecutor Josefina Minatta clarified she had not withdrawn her filing and would maintain it until Uruguay responds to requests concerning potential pollution risks. Lawmaker Guillermo Michel confirmed his preventive civil lawsuit also remains active. Uruguayan presidential secretary Alejandro Sánchez attributed the confusion to a misunderstanding, explaining the matter involved an appeal by Colón’s deputy mayor to the support committee for the Escazú Agreement, a regional environmental information treaty, rather than a formal court complaint.
The municipality of Colón stated it had requested access to materials in the Uruguayan case and ended consultations on August 25 without filing a complaint. The project represents the largest foreign investment in Uruguay’s history and envisions production of e-fuels from green hydrogen obtained through renewable energy combined with carbon dioxide from biomass chains. The facility is expected to create approximately 3,000 direct jobs, with the first phase estimated at $1 billion.
The plant location has already shifted following bilateral negotiations. Initially planned approximately three kilometers from the Argentine city of Colón in Entre Ríos Province opposite its waterfront, the site was moved after objections from Entre Ríos Governor Rogelio Frigerio and other Argentine officials citing visual impact on tourism and river pollution risks. Following two meetings at Uruguay’s Foreign Ministry in November and April, both sides agreed to relocate the facility to a site owned by state oil company Ancap.
Commercial terms remain under negotiation, with parties still working to finalize agreements on infrastructure ownership, investment distribution, and electricity pricing from state company UTE. Sánchez emphasized that while the Uruguay River’s use is governed by bilateral treaty, decisions within national territory remain sovereign. The diplomatic maneuvering reflects both nations’ intent to avoid replicating the prolonged conflict over pulp mill installations that previously strained bilateral relations.
This article was curated and published as part of our South American energy market coverage.
