Uruguay Green Hydrogen Project Advances as UTE Price Gap Narrows
President Yamandú Orsi says UTE and HIF Global have moved closer on the electricity price for a green hydrogen plant in Paysandú. A final investment decision is still not on the table. The post Uruguay Green Hydrogen Project Advances as UTE Price Gap Narrows appeared first on The Rio Times .
Uruguay's state utility and HIF Global are nearing an agreement on the green hydrogen plant's power tariff, though no contract or investment decision has been made. President Yamandú Orsi stated that the price gap has narrowed, urging caution about the upcoming outcomes. The power tariff negotiation involves UTE, the national electricity company, which buys and sells almost all of Uruguay's power.
HIF Global has proposed paying US$40 per megawatt-hour for electricity, a figure that has remained unchanged since 2023. The green hydrogen plant would rely on a mix of solar, wind, and grid power, with UTE's wind and solar farms dedicated to providing firm power to the plant. The project, valued at US$5.385 billion, comprises four modules and would generate roughly 876,000 tonnes of e-methanol annually.
Water and carbon dioxide for the process would be sourced from the Río Uruguay. The Uruguayans are also considering moving the plant to a new site near the Portland cement plant in Nuevo Paysandú, which would simplify carbon dioxide pipelines. Despite the progress, no final investment decision has been made, and the project's timeline remains uncertain, with exports potentially starting in 2029.
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