Sustainable Aviation Fuel

Argentina’s YPF and France’s TotalEnergies have signed a long-term offtake agreement for sustainable aviation fuel and renewable diesel produced at the San Lorenzo biorefinery, the first contract of its kind in the country.

The agreement was executed through Santa Fe Bio, a 50/50 joint venture between YPF and Argentina’s Essential Energy, and signed with TOTSA TotalEnergies Trading SA on 1 October 2026 in Paris. Under the terms, TotalEnergies will take the majority of output from the planned facility, while YPF retains a right of first refusal over roughly 30% of the volumes.

The deal is the anchor for converting YPF’s existing San Lorenzo refinery in Santa Fe province into a biorefinery producing sustainable aviation fuel and hydrotreated vegetable oil (HVO). The conversion is forecast to require more than US$400 million in investment and is targeted to deliver approximately 170,000 tonnes of SAF and HVO per year once operational.

Trade press describe the contract as the missing piece that unlocks the project, turning secured demand into a basis for project finance. The agreement runs for eight years with an option to extend a further four, and it positions the venture for Argentina’s Large Investment Incentive Regime (RIGI), which ties eligibility to assured offtake.

Sustainable aviation fuel demand continues to climb as airlines and fuel suppliers seek drop-in replacements, and long-term offtake structures of this kind signal growing confidence in advanced and co-processed feedstocks. The same tailwind is lifting interest in lower-carbon inputs such as recovered pyrolysis oil, which can be co-processed alongside conventional streams to raise renewable content.

For feedstock producers and technology providers, San Lorenzo underscores how secure demand accelerates capacity decisions across the SAF value chain. As more refiners lock in multi-year supply commitments, the economics of circular feedstocks and co-processing routes are likely to strengthen in step.

Learn More:

• Pyrolysis Oil Production
• Plastic Pyrolysis
• What Is Pyrolysis?
• Feasibility Studies
• Carbon Intensity Management

Partner With The KleanTeam for Sustainable Aviation Fuel Feedstock

Safe. Clean. Profitable. One Proven Partner.

Long-term offtake commitments like the YPF–TotalEnergies deal are raising demand for reliable, low-carbon feedstocks. Klean’s pyrolysis-oil routes turn end-of-life tires and plastics into the building blocks refiners need for SAF co-processing.

Klean’s Key Advantages:

• ✅ KBR added Klean’s proprietary TyreNova tire-pyrolysis technology to its IP portfolio (KBR is a partner).
• ✅ Klean delivers feasibility studies, turn-key EPC, design & engineering, and pyrolysis/gasification consulting.
• ✅ The Canadian government (DFAITC) recognized Klean for India cleantech and circular-economy trade.
• ✅ 8 recovered carbon black facilities were built in India over the past two years.

Ready to unlock recurring value from recovered feedstocks as the SAF market scales?

Speak with a Pyrolysis Oil Expert at Klean Industries » GO.