The Multimodal Logistics Corridor (MLC) company is in discussions with three global energy firms to produce hydrogen-based fuels at a new $1.6 billion port in Uruguay.
This port, called La Paloma Hub, will be near offshore wind energy sites. Ancap, a state-run oil company, plans to auction these sites soon.
Jorge Carcova Munilla, MLC’s Vice President, reveals they have early deals with European firms. These deals are for green hydrogen, synthetic fuels, and ammonia.
Uruguay’s Atlantic coast has seen many failed port projects before. However, MLC believes it can build a successful, multipurpose port.
The project aims to grow the existing La Paloma port. It involves filling 220 hectares of ocean and building breakwaters.
These changes will let bigger ships dock. MLC, funded by Argentine and Uruguayan investors, is negotiating with two other firms.
They discuss funding and possibly running the port.
First, the Uruguayan government needs to approve the project. Then, MLC will carry out feasibility and environmental studies.
Local laws require a competitive bidding process for building the port. If all goes well, construction could start in 2025, said Carcova Munilla.
- A desalination plant will supply the port with freshwater
- The port will have areas for yachts, warships, and fishing boats.
- MLC plans to get free trade and free port status for La Paloma Hub.
Background
The green hydrogen project is noteworthy because it taps into the growing renewable energy market.
Uruguay has a history of ambitious renewable energy projects, making this a logical next step.
The location near offshore wind farms is crucial. It ensures a sustainable energy supply for hydrogen production.
Past port failures on Uruguay’s Atlantic coast highlight the project’s risks, yet MLC’s multipurpose approach may offer a solution.
The involvement of global energy firms also adds credibility. If successful, this port could set a precedent for green energy projects in South America.
Regulatory approval remains a hurdle, but if cleared, construction could revolutionize Uruguay’s energy sector.