Uruguay attracts historic US$4 billion investment for green hydrogen production

Uruguay is set to receive a historic investment as HIF Global, a Chilean company, plans to invest nearly US$4 billion in green hydrogen production in the Paysandú region.

The construction of the new plant is expected to start within the next one to one and a half years, with an estimated completion time of 30 months.

During the construction phase, the project will generate employment for around 1,500 workers, reaching over 3,200 during peak periods.

Once operational, the plant will provide jobs for approximately 300 individuals.

This significant investment by HIF Global has the potential to impact the appreciation of the Uruguayan peso against the dollar, according to economists consulted by Bloomberg Línea.

The project originated from HIF Global winning a tender from ALUR, an Ancap subsidiary, to purchase 150,000 tons of biogenic CO2 annually.

This CO2 will be a key component in the production of e-fuels. Uruguayan President Luis Lacalle Pou personally announced the deal.

The HIF Global plant is projected to produce 256 million liters of e-gasoline per year by capturing 710,000 tons of CO2 from biomass combustion and grain alcohol distillation.

It will also produce 100,000 tons of green hydrogen annually.

The innovative aspect of this project lies in the utilization of biogenic CO2, which is currently considered waste.

The plant will require an investment of US$1.985 million for CO2 capture, methanol production, and the synthesis of synthetic gasoline.

The synthetic gasoline produced by the plant can be used interchangeably with regular gasoline, catering to both automotive and non-maritime aviation fuel needs.

In addition to the investment in the plant, around US$2 billion will be allocated to installing wind farms, photovoltaic farms, and power transmission lines within a 180-kilometer radius of Paysandú.

Ancap and HIF Global will establish a consortium, with Ancap (through ALUR) selling biogenic CO2 to HIF Global and participating in the industrial development.

Ancap will have up to a 30% stake in the business.

HIF Global, led by electrical civil engineer César Norton Sacre, is a renowned player in the green hydrogen sector.

The company has expanded its operations beyond Chile to the United States, Europe, the Middle East, and Asia.