The planned biorefinery will produce approximately 170,000 tons annually of sustainable aviation fuel and hydrotreated vegetable oil, a renewable diesel marketed as HVO. TotalEnergies Trading SA committed to purchase the majority of production under a firm long-term contract and secured preferential rights to remaining volumes. This offtake structure provides the revenue visibility required for project finance, allowing YPF to advance engineering and development phases with reduced commercial risk.
YPF characterized the agreement as critical for financing under a project finance model, noting it delivers commercial predictability for an installation designed to serve expanding global demand for renewable fuels. The state-controlled oil company emphasized the project leverages Argentina’s competitive advantages to generate investment, employment, exports and economic development. The facility will focus primarily on international markets where regulatory pressure to incorporate sustainable aviation fuel continues intensifying.
TotalEnergies brings 48 years of Argentine operations spanning oil and gas production, marketing and renewable energy generation. The French energy major’s participation connects San Lorenzo production to destinations implementing sustainable aviation fuel mandates as part of transport emission reduction targets. The partnership reflects broader industry movement toward securing renewable fuel feedstock as aviation decarbonization accelerates globally.
The biorefinery project advances YPF’s expansion beyond traditional hydrocarbons into new energy businesses. The San Lorenzo location in the Rosario industrial corridor provides access to vegetable oil feedstocks and export infrastructure. The investment timeline and production start date remain subject to completion of engineering studies and final financing arrangements, with construction activities dependent on securing project finance backing.
This article was curated and published as part of our South American energy market coverage.
