The first exports of raw material for sustainable fuels have begun from the facilities of the old San Lorenzo refinery. This follows the decision by YPF and Essential Energy to invest US$400 million to repurpose the site and create Santa Fe Bio, a new company dedicated to the production of SAF (Sustainable Aviation Fuel) and HVO (Hydrotreated Vegetable Oil) from vegetable oils, waste, and animal fats.
In May, YPF President and CEO Horacio Marín toured the Santa Fe Bio facilities. “I don’t like idle plants, which is why this project excites us. Once it reaches full potential, it will be able to export up to US$600 million per year,” he explained.
Last November, Santa Fe Bio took possession of a portion of the YPF refinery grounds in San Lorenzo, where it began construction of a plant to produce sustainable aviation biofuel (SAF).
The refinery, which had been inactive since 2018, will undergo a conversion process to be carried out in two stages. According to the Santa Fe provincial government, the biorefinery setup will take approximately three years of work, with an estimated investment of around US$400 million. It includes the construction of a pre-treatment plant and a biorefinery on the site.
Last August, Santa Fe’s Minister of Productive Development, Gustavo Puccini, highlighted that at the end of 2024, during a meeting attended alongside Governor Maximiliano Pullaro, it was noted that “it was contradictory for this plant to remain closed, especially given its strategic location and the fact that it belongs to YPF, a leading Argentine company.”
At that time, YPF committed to evaluating proposals for the refinery and has now fulfilled that promise by signing a bilateral agreement with Essential Energy, which was approved by YPF’s board of directors.
Puccini also emphasized that “this production repositions Santa Fe on the path of energy generation and establishes it as a leader in biofuel production. In this case, it involves a product that will be 100% for export and is in high demand in the United States and Europe.”
The project was formalized through a Memorandum of Understanding between YPF and Essential Energy, a leading biofuel company with national and international presence. “This investment turns Santa Fe into a platform for energy innovation, foreign currency generation, and federal leadership,” authorities stated.
A Strategic Province
The new biorefinery will produce SAF (Sustainable Aviation Fuel) and HVO (Hydrotreated Vegetable Oil) from vegetable oils, waste, and animal fats. To decarbonize its operations, global civil aviation is demanding sustainable fuels. Thanks to its strong corn and soybean production, Santa Fe becomes a strategic player. The global SAF and HVO market is in full expansion.
The provincial government and YPF continue to strengthen joint actions. This investment adds to the agreement signed for the commercial operation of service areas on Autopista 1 Rosario–Santa Fe, along with a fuel supply agreement with discounts and preferential prices for the province’s entire vehicle fleet. Additionally, the Ministry of Productive Development is working with YPF on the YPF Suppliers Academy to strengthen the competitiveness of Santa Fe companies currently supplying inputs and services to Vaca Muerta.
Santa Fe reaffirms its leadership vocation in the development of energy infrastructure as a productive engine. Santa Fe Bio supports biodiesel production, where the province remains the country’s leading producer. Just as with soybean meal and oil, giving soybeans other high-demand by-products improves the commodity’s price and adds value throughout the entire chain.
The development will be carried out in two phases. It is expected to create 1,000 jobs during construction and 200 to 250 direct jobs once operational. The project will also be submitted under the Large Investment Incentive Regime (RIGI), which will help accelerate its execution and consolidate Santa Fe as a strategic bioenergy hub.