Here is what I have in hibernate.cfg.xml
The URL format that comes from Heroku Postgres is not the JDBC format. It is a polyglot format so that all platforms can use it. So you need to transform the URL to the JDBC format. There is a good example of how to do that on the Heroku Dev Center:
https://devcenter.heroku.com/articles/connecting-to-relational-databases-on-heroku-with-java#using-the-in-plain-jdbc