Wedoany.com Report-Aug. 9, YPF, Argentina’s state-owned oil company, revealed plans to invest approximately $400 million in a new joint venture to produce and distribute sustainable aviation fuel (SAF). The initiative, named Santa Fe Bio, will be a collaborative effort with Essential Energy and will operate from YPF’s San Lorenzo refinery.

A view shows YPF Tower, a day after Argentina's runoff presidential election, in Buenos Aires, Argentina November 20, 2023.

The project will leverage funding from Argentina’s Large Investment Incentive Regime and is structured in two phases, according to a statement from YPF. The San Lorenzo facility, located in a strategic port city, is well-positioned to meet growing international demand for SAF from airlines.

“Sustainable aviation fuel is a critical step toward reducing carbon emissions in the aviation sector,” said a YPF spokesperson. “Our San Lorenzo refinery’s location offers excellent access to global markets, enabling us to contribute to this growing industry.”

SAF, derived from renewable sources such as used cooking oils and agricultural residues, is considered essential for airlines aiming to achieve net-zero carbon emissions. Despite its importance, SAF remains scarce, particularly in Latin America, making this venture a significant development for the region’s aviation industry.

The Santa Fe Bio project is expected to enhance YPF’s role in the global energy transition while supporting the increasing need for eco-friendly fuel alternatives. Further details on the project timeline and production capacity will be shared as the initiative progresses.