YPF announces sustainable fuel production and YPF Luz buyout

Argentina’s state-controlled energy company YPF has announced two major strategic developments. First, through its joint venture Santa Fe Bio with Essential Energy, the company will produce Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO) at a new biorefinery in San Lorenzo, Santa Fe. The project involves an investment exceeding US$400 million to repurpose an industrial complex that has been inactive since 2017.

YPF has secured a long-term purchase agreement with TotalEnergies, which will acquire the entirety of the production intended for export. The facility is expected to produce approximately 170,000 tons of renewable fuels annually, with potential export values ranging from US$300 million to US$1 billion per year. The biorefinery is projected to become operational by late 2029.

In a separate move, YPF’s board approved the acquisition of the remaining 24.99% stake in its electricity generation subsidiary, YPF Luz, from BNR Power Investments for US$430 million. This transaction will grant YPF 100% ownership of the unit, which currently provides roughly 10% of Argentina’s electricity. The buyout is expected to be financed through international sources.