YPF negotiates $500M aviation fuel pact with TotalEnergies

Argentine energy company YPF is negotiating an agreement with TotalEnergies for the French group to buy sustainable aviation fuel from its San Lorenzo refinery in Santa Fe province, according to EconoJournal on September 30, 2026. The talks have been underway for several weeks. A formal announcement could happen during Argentina Week Paris, an event attended by Argentine President Javier Milei, French President Emmanuel Macron, YPF CEO Horacio Marín, and TotalEnergies CEO Patrick Pouyanné.

YPF aims to transform the San Lorenzo plant into a biorefinery that produces sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO). The initiative would require an investment near $500 million and will be submitted under Argentina's Incentive Regime for Large Investments (RIGI). The venture also includes biodiesel producer Essential Energy Holdings, which established the equal 50-50 joint venture Santa Fe Bio with YPF in late 2024.

The project consists of converting the traditional refinery into a renewable fuel hub. The first phase, currently under execution, includes a raw-material pretreatment plant with a maximum annual capacity of 250,000 tonnes, alongside upgrades to logistics and storage tanks. The second phase outlines the installation of the biorefinery with a processing capacity of 170,000 tonnes of SAF per year, with startup scheduled for late 2029.

Bringing in TotalEnergies would expand the scale of the facility and accelerate investment. TotalEnergies plans to produce over 500,000 tonnes of SAF annually by 2028 to satisfy European Union rules, which mandate a 6% SAF share in aviation by 2030 and 70% by 2050. In Argentina, TotalEnergies already operates 25% of gas output across Vaca Muerta and offshore Tierra del Fuego, as well as solar and wind plants.