YPF and Essential Energy's Santa Fe Bio Signs Long-Term SAF Offtake Agreement with TotalEnergies for Argentina Biorefinery

Santa Fe Bio, the joint venture formed by Argentine oil company YPF and Essential Energy, signed a long-term offtake agreement on October 7 with TOTSA TotalEnergies Trading, the trading arm of TotalEnergies, for the future production of sustainable aviation fuel and other renewable fuels at a biorefinery under development in San Lorenzo, in the province of Santa Fe, Argentina.

The plant will have an estimated annual capacity of 170,000 metric tonnes of SAF and HVO, with output aimed primarily at international markets. TOTSA will acquire most of that volume under a firm long-term commitment and hold a preferential right over remaining volumes; contract duration, exact volumes, and the SAF share of output were not disclosed. The project will be structured as a project finance scheme, with the buyer commitment intended to give lenders the predictability needed to advance engineering and development, and total investment exceeds US$400 million.

The biorefinery will be built on the site of the former San Lorenzo refinery, previously operated by Oil Combustibles until 2016 and before that by Petrobras and Pérez Companc. YPF and Essential Energy hold equal stakes in Santa Fe Bio, with Essential handling operation and maintenance; the facility will process vegetable oils, waste, and animal fats, with full operations scheduled for 2029.

For TotalEnergies, present in Argentina for 48 years, the agreement adds a SAF supply source outside Europe, where mandatory blending requirements stand at 2% and are set to rise to 6% by 2030. The French company plans to produce more than 500,000 metric tonnes per year of SAF from its European refineries from 2028, and holds supply agreements with Air France-KLM for up to 1.5 million tonnes over ten years, as well as with Volotea.