The project, signed by the state-owned Alcoholes del Uruguay (ALUR), a subsidiary of the public fuel company Ancap, involves the installation of a green hydrogen and synthetic fuel production plant in Paysandú, in the country’s northwest.

The signing concluded a week of controversy, following the resignation of the president of Ancap, Alejandro Stipanicic, who disagreed with the Executive regarding the state company’s share in the project.

The government of President Luis Lacalle Pou instructed Ancap to refrain from investing in the project, which previously required a ceiling of 30 percent of the total sum.

Ancap’s investment was also rejected by representatives of the incoming government of the Frente Amplio, which will take office on March 1st, in coincidence with the inauguration of the president-elect, Yamandú Orsi.

The future deputy secretary of the Executive, Jorge Díaz, the designated secretary of the Presidency, Alejandro Sánchez, and the next head of Industry, Energy and Mining, Fernanda Cardona, considered the decision harmful to the interests of the Uruguayan State.

Ancap’s current board of directors issued a statement considering the agreement as strategic, to “provide biogenic CO2 as a key input for an innovative project for the production of synthetic fuels at the HIF Uruguay Plant.”

It is estimated that over the years the final plan will require 900 thousand tons of CO2, of which ALUR will provide 150 thousand. The estimated investment is six billion dollars and would allow the production of 700 thousand tons of renewable fuels annually.

Ancap explained that the HIF project “is awaiting the final resolution on the location for the plant and its associated environmental feasibility study.”

Also, “progress is being made in the preparation of the Environmental Impact Study and in the engineering of the plant, and infrastructure of services and access,” it added.

ied/arc/oo