**Argentina Withdraws Criminal Complaint Over Planned Green‑Hydrogen Plant in Paysandú, Uruguay**
*Montevideo, 30 August 2024* – Argentina has formally withdrawn the criminal complaint that had been lodged against the Uruguayan state and the U.S.‑based company HIF Global over the proposed construction of a green‑hydrogen plant in the department of Paysandú. The decision was announced on Friday by Uruguayan President Yamandú Orsi during the inauguration of road‑rehabilitation works on Route 4 in Guichón, Paysandú.
The complaint, filed by legislators of the Unión por la Patria bloc in the Argentine province of Entre Ríos – notably Deputy Guillermo Michel and Senator Adán Bahl – alleged that the location of the plant, a few kilometres from the Argentine town of Colón, could threaten the town’s potable‑water intake. The action targeted both the Uruguayan government and HIF Global, and had been under investigation by an Argentine federal judge who inspected the Colón waterfront on 22 August.
President Orsi described the withdrawal as a “good diplomatic news” and linked it to a broader increase in regional confidence in Uruguay’s ability to host large‑scale clean‑energy projects. He noted that the removal of the criminal complaint “clears a major obstacle” that had been weighing on an investment estimated at more than US$5 billion.
The project, which would be the most ambitious green‑hydrogen initiative in Uruguay, is now moving forward after a decision in April by Paysandú Mayor Nicolás Olivera to relocate the plant to a different site within the department. The relocation will require new environmental impact studies, but officials said it does not alter the overall timeline, which may be adjusted according to market conditions for hydrogen.
In parallel with the judicial development, President Orsi reported that Uruguay’s state electricity utility UTE and HIF Global have “come closer” on the terms for the electricity price that will be supplied to the plant. Negotiations are being conducted on a project‑by‑project basis to establish a stable tariff framework and avoid ad‑hoc renegotiations for future investments.
Minister of Industry Fernanda Cardona, speaking at a recent Somos Uruguay event, said that the country has “advanced more in one year than in the three previous years” regarding the hydrogen project. She confirmed that HIF Global will also establish a research laboratory in Uruguay, aimed at fostering technology transfer and positioning the country as a regional hub for clean‑energy development.
Earlier in the administration, the project faced environmental objections from Argentine officials, including Governor Rogelio Frigerio of Entre Ríos, who warned that the dispute could be taken to the International Court of Justice in The Hague. With the complaint now withdrawn, that scenario is no longer being pursued.
The withdrawal clears the way for the Uruguayan government to continue negotiations with HIF Global and to proceed with the necessary environmental assessments for the relocated site. No further legal actions related to the plant have been reported as of this date.
Article and image source: lr21.com.uy
