Uruguay, Argentina seek compromise on hydrogen plant

Uruguay and Argentina say they are making progress in talks to address a dispute over a multibillion-dollar green hydrogen plant planned on the Uruguayan side of a shared border river.

Argentina’s Foreign Minister Pablo Quirno travelled to Montevideo to meet his Uruguayan counterpart Mario Lubetkin for the second time in six months to discuss the US$5-billion project proposed by multinational company HIF.

“This meeting can only be seen as positive, as a substantial step forward in a process that still requires several more stages before it can be finalised,” Lubetkin, Uruguay’s top diplomat, told reporters after the meeting.

Uruguay informed Argentina that it is currently assessing the project’s environmental impact study. It is also considering alternative locations for a possible relocation of the plant, which is one of Buenos Aires’ key requests.

The original proposed site is in the northern department of Paysandú, a few kilometres from the Uruguay River, which forms the natural border between the two countries. 

The project has caused concern in the Argentine city of Colón over its potential impact on the environment and the region’s tourism industry.

Quirno welcomed Uruguay’s decision to take into account Argentina’s environmental observations during the review process.

“Argentina has a highly conciliatory and pro-investment position. The region needs greater investment,” he said, adding: “We are seeking win-win solutions and trying to avoid future conflicts.”

He also stressed that Uruguay “has every right to accept investments that meet its requirements”, while noting that its willingness to engage in dialogue helps to “avoid conflicts.”

“These are not facts, these are processes,” Lubetkin said during the joint press conference. 
“What we began on November 26 was a process in which we explained to the Argentine authorities the basic aspects of this project, and they expressed certain concerns as well as strong incentives,” the Uruguayan foreign minister added.

The minister also highlighted the political tone of bilateral relations and the level of dialogue achieved between the two governments.

He noted that there had been “many meetings” between both sides in recent months to address not only this issue but also other strategic matters on the bilateral agenda.

Although the relocation of the plant has not yet been decided, local media reports suggest it is most likely to be moved to another area within the same department.

Entre Ríos Province Governor Rogelio Frigerio took part on Monday in a working meeting in Montevideo with Argentine and Uruguayan officials to advance discussions.

The meeting included officials from Argentina’s Foreign Ministry, members of the Uruguayan government, Uruguay’s environment and industry ministers, and the mayors of the cities Colón and Paysandú, according to local media.

During the meeting, the Uruguayan government confirmed it is evaluating alternative locations for the proposed synthetic fuel refinery in Paysandú in response to concerns raised by Argentina.

It was also confirmed that the city of Colón would be included within the project’s area of influence for the purposes of preparing the Environmental Impact Assessment.

Argentine authorities stressed the need to take every precaution to avoid potential adverse effects on existing economic activities in riverside communities linked to the sustainable use of the Uruguay River.

Montevideo and Buenos Aires have clashed diplomatically in the past over the construction of industrial plants near the Uruguay River.

In 2010, the two countries resolved a dispute over the installation of a pulp mill in Uruguay near the shared river.

Tabaré Vázquez, Uruguay’s president at the time, later said after leaving office that he had even considered the possibility of an armed conflict with the neighbouring country.

– TIMES/AFP/NA