YPF to invest USD400 million in sustainable jet fuel venture

Argentine state oil firm YPF will invest around $400 million as part of a new joint venture to produce and sell sustainable aviation fuel (SAF), it stated in a communiqué.

The new venture, to be called Santa Fe Bio, will be run in tandem with Essential Energy and operate out of YPF's San Lorenzo refinery.

The project, which will pull financing from Argentina's Large Investment Incentive Regime, is planned in two phases, YPF said in a statement.

YPF said the plant's location in San Lorenzo, a port city, was ideal for selling SAF abroad as demand from airlines grows.

SAF is seen as key to reaching the net-zero carbon emissions commitments of airlines, which are heavy polluters. But the fuel, which is made from waste products such as used cooking oils and crop residues, remains in short supply, particularly in Latin America.