While the $5.3bn initiative hasn’t been fully approved, the Ministry of Environment confirmed that the site is environmentally acceptable. HIF will move into the full environmental permitting stage.

This will include an Environmental Prior Authorisation (AAP) to proceed with the project, and an Environmental Impact Assessment (EIA), which includes a detailed study covering air, water, ecosystems, noise, waste, land use, and social and cultural impacts.

The government classified the Paysandú plans as “high complexity,” meaning HIF must undergo the most rigorous form of review involving multiple agencies.

Nevertheless, CEO Martin Bremermann called the approval a “key milestone in the environmental evaluation process,” and allows HIF to stay on track with its development timeline.

“HIF Paysandú would be the first commercial e-fuels facility in Latin America, a great opportunity for the region and a step that positions Uruguay as a leader in innovation, sustainability, and the energy transition,” the CEO added.

HIF reportedly began its environmental permitting process last year, with pre-FEED completed and FEED work initiated in the second quarter of 2024.

Renewable electricity from the nearby 1,162MWp Lucia solar park and the 1,137MWp Elena wind farm will power the facility’s e-fuel production processes.

HIF will also recycle captured CO2 from local biogenic sources, including 150,000 tonnes per year from Alur’s bioethanol plant to make e-fuels.

However, public details on the Paysandú project remain limited.

HIF is also developing hydrogen-based e-fuels facilities in Chile and the US.

Its Haru Oni plant is certified under EU e-fuel production rules, while the $7bn Matagorda project in Texas will use Electric Hydrogen electrolysers to produce e-methanol at a 1.8GW scale.