Argentina is moving closer to expanding its sustainable aviation fuel (SAF) industry, with four companies developing projects involving combined investments of up to $4 billion as the country considers reforms to its biofuel regulatory framework, reported Industrial Info Resources.
The Argentine Senate approved a new biofuel bill last month aimed at increasing biofuel blending in diesel and petrol, promoting competition and supporting investment in the sector. The legislation has now been referred to the Chamber of Deputies for approval.
If enacted, the proposed framework would liberalise the commercialisation of sustainable aviation fuel, giving producers greater clarity on market access and commercial operations.
Four companies are currently advancing SAF-related projects in Argentina: Avalon, GreenSinnergy, Grupo BahÃa EnergÃa and Santa Fe Bio, a joint venture between YPF and Essential Energy.
Among these, Santa Fe Bio is the most advanced project, with an investment estimated at more than US$400 million. Construction of its first phase has already begun and is expected to be completed by the end of 2027.
The initial phase involves converting the former San Lorenzo refinery to process up to 250,000 tonnes of pre-treated oils annually. The feedstock will include soybean, sunflower, rapeseed and camelina oils, along with used cooking oils and animal fats.
Until domestic processing facilities become operational, the processed feedstock will be exported to Europe for use in SAF production.
The project’s second phase is targeted for 2030 and is expected to produce up to 423 tonnes per day of renewable diesel and 73 tonnes per day of SAF. Santa Fe Bio has already secured an offtake agreement with TotalEnergies for 170,000 tonnes per year.
The proposed regulatory changes and investments are expected to strengthen Argentina’s position in the emerging sustainable aviation fuel market, while creating opportunities for domestic agricultural feedstocks and biofuel processing.
