Chancellor Omar Paganini, after his tenure at the Ministry of Industry until November 2023, spoke about the government’s decision to withdraw Ancap of the investment in the project green hydrogen from HIF Global. This decision led to the resignation of Ancap president Alejandro Stipanicic. Paganini stressed the importance of avoiding “another case Pluna either regasifier”.
Paganini affirmed that Ancap remains involved in the project in Paysandú, considered the largest investment in the history of the country. As he explained in his X account, Ancap participates as a CO2 supplier, but not as an investor. HIF will be in charge of producing hydrogen and combining it with CO2 to create green fuels.
Project details and Ancap’s role
HIF Global will assume responsibility for the investment, provide the necessary technology and be responsible for the construction of the plant. In addition, it will develop business and logistics internationally. Paganini assured that the progress of the project does not depend on Ancap’s investment, since HIF assumes both the investment and the associated risk..
The chancellor justified the government’s decision not to invest, arguing that the new energy market is in full development and carries risks. He cited past examples such as Pluna and the regasification plant, where the Uruguayan State took risks that resulted in significant financial losses.
Reactions of the president-elect and other opinions
The elected president, Yamandu Orsiexpressed that “at first glance” it seems “a mistake” the refusal of Luis Lacalle Pou’s government to get involved in the green hydrogen project in Paysandú. Orsi expressed skepticism about whether this position will be beneficial for the State. Consider that not participating could close an important door for the future.
During a press conference, Orsi noted that, although he has doubts, he hopes to analyze the situation in more depth once he takes office. He expressed his incomprehension about the reasons behind the government’s decision, especially considering the potential of green hydrogen as an energy of the future.
position of the minister of industry on investment
The Minister of Industry, Energy and Mining, Elisa Facio, defended Lacalle Pou’s position by stating that she would not stand “taxpayer money” in “risky investments”. He argued that these investments should be financed by private capital. Facio acknowledged that the plant in Paysandú is a good project, but with “many uncertainties,” given that the market for the product is not yet established.
The former mayor of Canelones, Orsi, reiterated that he does not understand the current government’s reasons for withdrawing state participation. “It seems to me that closing a door is something too categorical”he explained, suggesting that green hydrogen is an opportunity that “is not going to happen tomorrow,” but is worth exploring.
Orsi concluded that, although he initially considers the decision a mistake, he intends to discuss the issue with President Lacalle Pou to evaluate the next steps. He stressed that careful analysis will be required to determine how to proceed with the project. While green hydrogen presents uncertainties, it also offers great opportunities that could have a significant impact on the country’s energy future.
