Uruguay: Pioneering a Green Energy Future

Uruguay has solidified its position as a global leader in renewable energy, with more than 90% of its electricity matrix powered by renewables between 2016 and 2022. Now, the country faces a new challenge: decarbonizing its transportation and industrial sectors, which still rely on fossil fuels. In this context, green hydrogen emerges as a key solution in the transition towards a fully sustainable energy matrix.

a) Why Invest in Green Hydrogen in Uruguay?

Proven Expertise and Leadership: Uruguay successfully completed its first energy transition, with 98% of its electricity demand met by renewable sources. Now, with a focus on green hydrogen, the country is advancing towards full decarbonization.

Unmatched Natural Resources: Uruguay's abundant solar and wind resources enable the competitive production of green hydrogen, with projected costs of USD 1.2–1.4 per kg by 2030.

Robust Infrastructure and Stability: With strong regulatory frameworks and political stability, Uruguay offers an ideal environment for long-term investments in clean energy projects.

b) The HIF Project in Paysandú: A Milestone for Uruguay

The announcement of the construction of a green hydrogen and eFuels plant in Paysandú, led by HIF Global, marks a US$ 4 billion investment. This plant is set to produce 256 million liters of eGasoline annually, contributing to the decarbonization of more than 150,000 vehicles per year. The investment includes US$ 2 billion for the construction of the plant and an additional US$ 2 billion for the development of wind and solar parks that will supply the renewable energy required to generate green hydrogen.

This project is a landmark in Uruguay’s second energy transition, placing the country at the forefront of green energy production worldwide. Uruguay’s first energy transition, completed over the past decade, enabled 98% of its annual electricity demand to be met by renewable sources such as wind, biomass, solar, and hydropower.

With sustained economic growth, social and political stability, forward-looking legislation, and privileged natural resources, Uruguay has become a global leader in renewable energy. Now, with green hydrogen and the promotion of electric mobility, the country aims to complete its transformation into a fully sustainable energy economy.