Uruguay's US$6B Green Hydrogen Project Faces Threat from Electricity Pricing Dispute
The green hydrogen initiative by HIF Global in Uruguay, valued at US$6 billion, is jeopardized by unresolved electricity pricing issues. If negotiations fail, the project could relocate to Paraguay, resulting in significant economic losses.
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HIF Global's green hydrogen project, estimated at US$6 billion, could face relocation to Paraguay due to a dispute over electricity tariffs. The company proposes a rate of US$40 per megawatt-hour, while Uruguay's state utility demands US$45, impacting project viability.
The project aims for 880,000 tons of synthetic fuel production annually and could generate over US$1 billion in exports once fully operational. The timeline for final investment decisions extends to late 2027 or 2028, leaving room for negotiation but also risk of collapse. The outcome hinges on political resolve to close the pricing gap.
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