Uruguay's Rise in Clean Energy Projects and Green Hydrogen Initiatives
Key Ideas
  • Uruguay has seen a surge in clean energy projects and corporate power-purchase agreements, marking a shift towards sustainable energy sources.
  • The country is embracing green hydrogen and e-fuels production, with initiatives like the US$3.99 billion Paysandú department e-fuels project and the Kahirós project targeting the forestry industry.
  • State utility UTE is investing in solar PV parks like Punta del Tigre to increase renewable energy capacity and support the electrification of the economy.
  • Uruguay aims to transition heavy transport, such as forestry trucks, to green hydrogen in a move towards reducing dependence on diesel and promoting sustainability.
Environmental permitting documentation for clean energy projects in Uruguay has been submitted for review, signaling a growing trend towards sustainable energy sources in the country. Notable among these efforts is the first corporate power-purchase agreement (PPA) between private parties, where Coca-Cola Femsa Uruguay obtains clean power from the 10MW Albisu plant in the Salto department. Additionally, green hydrogen and e-fuels production are emerging as potential drivers of new private renewables capacity in Uruguay. The largest green hydrogen project in Uruguay is HIF Global's US$3.99 billion Paysandú department e-fuels initiative, which involves a 2GW solar PV and wind complex to power its operations. Several other projects, such as Teyma, Enertrag, Salto Ángel, Las Marías, and Palos Blancos, are incorporating green hydrogen plant electricity supply in their plans. The country's state utility, UTE, is also actively investing in solar PV farms like Punta del Tigre to boost renewable energy generation. Uruguay's focus on increasing electrification of the economy includes grid connection, distributed generation, electromobility, and smart meters as key pillars. The country is working towards transitioning the heavy transport sector, particularly forestry trucks, from diesel to green hydrogen. Projects like Yaguarí, Enertrag Uruguay solar park, Aguaí solar PV park, and Kahirós, which combines solar PV and an electrolyzer for green hydrogen, are contributing to Uruguay's sustainable energy transition.
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