HIF Global, ANCAP sign agreement to accelerate eFuels deployment in Uruguay

eFuels company HIF Global and Alcoholes del Uruguay (ALUR), a company of the state-owned ANCAP group, have signed an implementation agreement establishing a framework for the interaction between HIF’s future eFuels facility in Paysandú and ALUR’s biofuel plant nearby.

The HIF Paysandú eFuels facility, with an estimated investment of USD$6 billion, aims to produce 700,000 tons of renewable fuels annually.

The HIF Paysandú eFuels facility is expected to recycle 900,000 tons of CO2 per year, of which approximately 150,000 tons will come from ALUR.

Earlier this year, HIF’s project was selected through an international call made by ALUR for the development of an initiative to reutilize biogenic carbon dioxide from the company’s biofuel facility in Paysandú.

“This agreement is an important step forward for our project in Uruguay, and we will continue working energetically towards its realization,” said Cesar Norton, the president and CEO of HIF Global. “We trust in our collaborative work with the authorities, which will allow us to keep Uruguay among the countries leading the production of renewable fuels.”

Diego Durand, ANCAP’s acting president, added, “This collaboration represents a key step forward in the development of a sustainable fuels industry in Uruguay, strengthening the ANCAP Group’s strategy of promoting projects that create economic and environmental value both locally and globally.”

The HIF eFuels plant in Paysandú is awaiting the final resolution for the land-use change where it will be located, as well as the subsequent environmental-location viability.

Additionally, the HIF team is advancing in the environmental-impact study, the engineering for the facility and its associated infrastructure and access services.

HIF said this agreement reaffirms the commitment of both parties to promote initiatives that foster a cleaner and more sustainable economy while exploring opportunities to position Uruguay as a leader in innovative energy solutions for the world.

Uruguay is one of the global leaders in energy transition, with over 97 percent of its electricity matrix derived from renewable sources.

eFuels are synthetic fuels produced with renewable energy and recycled CO2 from industrial, biogenic sources, or directly from the atmosphere.

They are chemically equivalent to current conventional fuels, which means they can be used in existing cars, boats and airplanes without the need to modify engines or infrastructure.

HIF has been producing eFuels for two years at its HIF Haru Oni plant in southern Chile, and has completed eight exports to its customer Porsche, the German automotive company.