HIF Global has signed a memorandum of understanding (MoU) with the Government of Uruguay to progress development of its planned e-fuels project in Paysandú, according to an announcement issued by the company on 19 December.

The agreement, signed through the company’s local subsidiary, establishes the technical and institutional steps required during the pre-investment decision phase. These steps cover both the proposed e-fuels production facility and the renewable energy assets intended to supply it, including the Lucía solar park and the Elena wind park.

Under the framework set out in the memorandum, the project is expected to involve investment of more than US$5.3bn. HIF Global said construction would generate around 1,400 jobs, with a further 300 permanent roles anticipated once the facility becomes operational.

The agreement also outlines plans to rehabilitate the railway infrastructure needed to transport synthetic fuels to the port of Montevideo. Two joint bodies, a high-level committee and a technical committee, will be established, bringing together government authorities and HIF representatives to coordinate progress across key areas.

These include energy supply arrangements, environmental approvals, easement definitions and development of rail logistics required to support future operations.

The Paysandú project is planned to be developed in four phases and will use green hydrogen combined with recycled CO₂ to produce e-fuels. Once fully built, the facility is expected to reach production capacity of up to 880,000 tonnes per year, which the HIF Global said would be equivalent to decarbonising more than 400,000 vehicles.

Johnson Matthey, whose e-methanol eMERALD technology has been selected to be deployed at the Paysandú plant, explained in May 2024 that the facility will be used support the decarbonisation of the marine and automotive sectors.

HIF Global is developing e-fuels projects in several regions. Currently, it operates an e-fuels facility in Chile, while advancing commercial-scale developments in Uruguay, the United States, Brazil and Australia.