HIF Global and Uruguayan government negotiate PPA for 2.3 GW green hydrogen and e-fuels project in Paysandú

Type: Ppa · Technology: Hydrogen · Country: Uruguay · Announced: 2026-08-12

In December 2025, HIF Global and Uruguay's state-owned oil company ANCAP signed a memorandum of understanding with the government to develop the largest private investment in Uruguay's history, a $5.385 billion green hydrogen and e-fuels project in Paysandú. The initiative includes a 1 GW electrolyzer, over 2.3 GW of new renewable capacity (1.162 GWp Lucía solar park and 1.1376 GW Elena wind farm), and aims to produce up to 876,000 tonnes annually of e-methanol. The parties are negotiating a power purchase agreement (PPA) with state utility UTE for electricity supply at approximately $40-45/MWh, significantly below Uruguay's industrial tariffs of $60-80/MWh. The project is expected to create 1,400 construction jobs and 300 permanent operational positions, with HIF Global considering Paraguay as an alternative if Uruguayan electricity pricing terms cannot be agreed. Environmental approvals were secured in November 2025 despite cross-border concerns from Argentina regarding the project's location near Colón.

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