Green hydrogen project in Uruguay not quite environmentally friendly

A green hydrogen production plant planned for Uruguay by the company HIF has been classified as having a “significant negative environmental impact” by the South American country’s Environment Ministry, due to which the initiative, at an estimated investment of US$6 billion, faces several challenges.

The project plans to clear 33 hectares of native forest, from an original plan of 110 hectares. HIF says it will implement a restoration plan to compensate for this.

The plant will also require a significant amount of water, with up to 450 liters per second to be extracted directly from the Uruguay River.

The project also involves extensive heavy truck traffic and requires the construction of a river access point, which would affect the riverbank.

In addition, the plant is located in an ecologically sensitive area and near a protected nature reserve, the Queguay Islands, raising further concerns.

The project has been categorized with the highest environmental impact rating, which mandates a full environmental impact study and a public hearing. HIF acknowledges that the project could be met with “negative social perception” due to landscape changes and worries about water pollution and potential cross-border contamination, particularly from the city of Colón in Argentina.

However, the company hopes the local community will be receptive due to the promise of jobs—1,375 during construction and 600 permanent positions—and other economic benefits.

HIF is now in the process of gathering public comments and is required to submit a more detailed environmental study before the project can proceed.