Uruguay and HIF Global renegotiate location of proposed Paysandú hydrogen complex

Uruguay and HIF Global are renegotiating the location and terms of a proposed hydrogen and synthetic-fuels complex in Paysandú after opposition from communities in Argentina led the company and government to reconsider the project’s original riverside site.

Uruguayan President Yamandú Orsi said talks with HIF had advanced and that the two sides could reach a further understanding within roughly two weeks. He indicated that the proposal had changed substantially while maintaining its central purpose: producing energy and related industrial products. The president also acknowledged that the location had been revised in response to concerns raised in Argentina, which he described as at least partly justified.

The proposed replacement site is understood to be on land connected to Uruguay’s state fuel company, ANCAP, farther from the river and closer to existing industrial facilities. The precise location and the final technical design have not yet been made public. Uruguay’s foreign minister, Mario Lubetkin, has formally told Argentine authorities that the plant would not be built at the initial site if the negotiations with HIF produce an agreement.

HIF’s representative for environmental and community affairs told Paysandú’s departmental council that the company was close to an agreement with Uruguay. The discussions have included additional environmental studies, engineering modifications and changes to the design of the industrial complex. The agreement, however, has not been signed, and the environmental review process is continuing.

The original proposal drew opposition in Colón and other communities in Argentina’s Entre Ríos province, directly across the Uruguay River. Residents and environmental organizations raised concerns about possible effects on public health, the river environment, tourism and the landscape. They also challenged the lack of information about how the project could affect the cross-border region.

The Paysandú government has presented the development as a major economic opportunity. It estimates that the investment could exceed $5 billion, with hundreds of permanent jobs and between about 1,300 and 3,200 positions during construction. Local officials have said the alternative location is being assessed both for logistical reasons and to reduce the area potentially affected across the river. They have also argued that the change should not delay the project’s timetable or weaken its compliance with environmental requirements.

Paysandú’s mayor said meetings involving Uruguayan and Argentine officials, as well as representatives from Entre Ríos, were intended to address the concerns of river communities rather than halt the development. The municipality has emphasized that Argentina did not formally request that the project be suspended. The decision to study a new site therefore reflects a combination of cross-border political pressure, local objections and operational considerations.

Argentine environmental groups have welcomed the abandonment of the original location but remain doubtful that the dispute has been resolved. In Colón, activists argue that moving the plant only a few kilometers may leave many of the same environmental, health, tourism and visual effects in place. They say residents still lack official details about the replacement site, its technology and its potential consequences for Colón and the wider Tierra de Palmares area.

The groups also maintain that civil and criminal proceedings associated with the project remain active in Argentina. Separately, a dispute concerning opposition signatures has continued in Paysandú. These issues mean that the relocation announcement does not by itself remove the legal or political obstacles facing the development.

HIF’s project is part of Uruguay’s effort to build an industry around renewable electricity, hydrogen and synthetic fuels. Its scale has made it important to Paysandú’s plans for investment and employment, but its location on a shared river has given the proposal consequences beyond Uruguay’s borders. The next stages will depend on the company and government reaching a formal agreement, completing the revised environmental assessments and providing enough information for communities on both sides of the river to evaluate the new plan.