YPF will promote the reconversion from the historic San Lorenzo refinery (Santa Fe) into a biorefinery oriented towards sustainable aviation fuels, a step that positions it in the global supply chain for low-emission energy.
To achieve this, the board approved the creation of Santa Fe Bio, a new company that will develop the project together with Essential Energy, with a estimated investment of USD 400 million, two stages of execution and main focus on the production of SAF and alternatively HVO.
What will be built and phases of the project
The plan includes the installation of a raw material pretreatment plant and a state-of-the-art biorefinery, in addition to the adaptation of existing facilities at the San Lorenzo industrial complex, which has been inactive since 2018To better understand the benefits of these technologies, you can review our analysis on Biofuel strategies in Brazil and Europe.
The roadmap foresees two milestones: a first phase with annual production of 100.000 tons of SAF from 2030 and a gradual expansion until exceed 500.000 tons per year when the plant is operating at full capacity.
The product line will focus on SAF (Sustainable Aviation Fuel) for the airline sector and, as an alternative, HVO (hydrotreated vegetable oil) with properties comparable to diesel, expanding the range of potential uses.
The project will will be presented under the Large Investment Incentive Regime (RIGI), with a financial structure based primarily on project finance, which facilitates the mobilization of capital and the entry of strategic partners.
Alliance and business roadmap
Santa Fe Bio will be owned equally by YPF and Essential Energy. Both companies began feasibility studies in December 2024 after signing a Memorandum of Understanding (MOU) and are currently making progress on the final contractual terms.
The CEO of Essential Energy, Federico Pucciarello, stressed that the agreement will allow for what he describes as the first environmental RIGI in the province, focusing on the manufacturing and refining of SAF. The alliance combines both parties' technical and commercial expertise in advanced biofuels.
Location, logistics and access to raw materials
The location in San Lorenzo, on the banks of the Paraná Waterway, provides a key competitive advantage: direct port connection for exports and logistical synergy with the country's largest oilseed crushing hub. For more details on the logistical advantages of these projects, please read our article on .
The core area offers abundant availability of vegetable oils and agro-industrial waste, essential inputs to reduce procurement costs and ensure continuity of supply in increasing volumes.
La port terminal of the complex It will allow shipments to be shipped to Europe and the United States, markets with demanding environmental regulations and expanding demand for certified fuels.
Production technology and products
The biorefinery will use type technology HEFA (Hydrotreated Esters and Fatty Acids), which hydrogenates oils and fats to obtain hydrocarbons with aeronautical specifications, significantly reducing the carbon footprint compared to fossil kerosene.
The planned raw materials include vegetable oils, waste and animal fats, prioritizing second-generation flows to improve the environmental performance of SAF and HVO and meet certification requirements.
Demand, certifications and target markets
International organizations recognize that the SAF is the scalable alternative more viable medium-term approach to decarbonizing aviation. At the same time, airlines face increasing emissions reduction targets, which is driving structural demand. To understand the market potential, you may be interested in our analysis of .
YPF plans to orient production towards foreign markets and work with schemes ISCC certification, a common requirement in the European Union and the United States for traceability, sustainability and product quality.
Incentives and conditions of the regime
The initiative is part of the Incentive Regime for Large Investments, which offers tax and exchange benefits to projects of more than USD 200 million. These include a reduced rate of Income Tax, facilities for VAT tax credits and preferential treatment in financial taxes.
The regime also establishes selective exemptions to foreign trade duties and progressive access to export foreign currency (with scaling by years of operation), while demanding a minimum disbursement of 40% of the commitment during the first two years.
These instruments strengthen the competitiveness of the Argentine SAF in premium markets, offer long-term predictability and improve the bankability of the project.
The San Lorenzo complex has a long history in refiningAfter privatization in the 90s, it was operated by Pérez Companc and later by Repsol and Petrobras; it later passed into the hands of Oil Combustibles. Operations were halted, and in 2018, YPF reacquired the facilities.
The conversion will allow reactivate existing assets and address historical environmental liabilities, transforming the site into a biofuel hub with high export potential and the ability to attract complementary investments.
With this roadmap, Santa Fe Bio aspires to become It is a key player in the region's SAF, supported by port infrastructure, availability of inputs, and an incentive framework that facilitates the launch of capital-intensive projects.