Argentine federal courts began analyzing on Wednesday (March 18, 2026) a lawsuit related to a planned energy project in the Uruguayan city of Paysandú, located opposite the Entre Ríos town of Colón, on the Uruguay River, whose eventual execution could generate environmental effects in Argentine territory.
In that context, the Federal Prosecutor's Office of Concepción del Uruguay issued Opinion No. 199/2026, within the framework of file No. FPA 3276/2026, entitled “Michel, Guillermo and others v. Eastern Republic of Uruguay – Uruguayan State – and another re: various damages”, in process before the Federal Court of Concepción del Uruguay No. 2, Civil Secretariat 2.
Federal prosecutor María Josefina Minatta analyzed which court should intervene and concluded that the case should continue before the local federal court.
According to the ruling, the fact that the lawsuit is filed against a foreign state does not automatically enable the intervention of the Supreme Court of Justice of the Nation. The Public Prosecutor's Office pointed out that the original jurisdiction of the highest court is exceptional and only applies in the cases expressly provided for in Articles 116 and 117 of the National Constitution.
In practical terms, the decision does not yet resolve the core of the conflict, but rather defines where the case will be analyzed: the file will continue its course in the federal court of Concepción del Uruguay, which will have to evaluate the arguments and measures requested by the plaintiffs.
Demand and actors
The legal action was filed on March 12 by the National deputies Guillermo Michel and Marianela Marclay and national senator Adán BahlRepresentatives from the province of Entre Ríos.
This is an ordinary civil claim for the prevention of damages, based on articles 1710 and 1711 of the Civil and Commercial Code of the Nation and on article 319 of the Civil and Commercial Procedural Code.
The action is directed against the Eastern Republic of Uruguay and the company HIF Global SA, responsible for the industrial project planned in Paysandú, on the eastern bank of the Uruguay River and opposite the Argentine city of Colón.
The energy project in question
A large industrial facility, with chimneys looming over the coastal horizon, became a central element of the conflict. The project envisions the construction of an e-fuel production plant on the banks of the Uruguay River, a shared waterway that forms the natural border between the two countries.
HIF Global is a multinational company specializing in electrofuelswith similar projects in Punta Arenas (Chile) and Rio de Janeiro (Brazil). Its shareholders include companies from diverse backgrounds, such as the German automaker Porsche, the Japanese energy company Idemitsu, and the Chilean firm Andes Mining & Energy (AME).
The project envisions the production of synthetic fuels—including e-gasoline—capable of replacing fossil fuels in internal combustion engines with a potentially carbon-neutral balance. This would be achieved using green hydrogen generated at the industrial complex itself, combined with biogenic carbon dioxide partially captured from the combustion of forestry waste and emissions from the Alcoholes del Uruguay (ALUR) bioethanol plant, also located in Paysandú.
The environmental approach
According to the records in the file, the damage alleged by the plaintiffs would be linked to the possible environmental effects derived from the industrial installation on the Argentine border area.
The actors argue that the undertaking should be evaluated through the bilateral information and consultation mechanisms provided for in the Statute of the Uruguay River, administered by the Administrative Commission of the Uruguay River (CARU).
Likewise, the presentation invokes as The precedent is the ruling issued in 2010 by the International Court of Justice in the dispute between Argentina and Uruguay due to the installation of pulp mills on the same river course, highlighting the relevance of the principle of environmental prevention and cooperation between riparian States.
The measures requested include preventive actions, such as judicial inspections on the banks of the Uruguay River and studies on the quality of its waters.
A developing conflict
Tensions are rising as the project progresses—its first memorandum of understanding was signed in 2024. According to the company's timeline, construction would begin in the second half of 2026 and extend until 2029.
For now, the judicial decision marks only the beginning of the process: the federal court of Entre Ríos will be in charge of analyzing the case.
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