Central Puerto and YPF Luz sign strategic agreement

YPF Energía Eléctrica S.A. (YPF Luz) and Central Puerto S.A. (CEPU) has announced the signing of a strategic agreement to jointly advance the study and development of a major interconnection project to supply clean and efficient electric power to the Puna region of Argentina.

This agreement marks a significant milestone, as two major power generation companies will, for the first time, jointly assess the technical and regulatory aspects required to carry out the execution of a large-scale electrical infrastructure project. The aim is to provide a comprehensive energy supply solution with a particular focus on the development of the mining industry.

The project will enable the Argentine Interconnection System to supply the energy demands of the mining sector and local communities in the Salar de Pastos Grandes and Salar del Hombre Muerto areas, located in the provinces of Salta and Catamarca. Additionally, it includes a potential extension to the Salar de Carachi Pampa in Catamarca. This joint effort would involve an investment of $250 to $400 million, depending on the final scope of the project. The proposed development includes the construction of an approximately 140 km electrical line, which could potentially be extended to 350 km. The line will optimize resources and capabilities to deliver efficient and sustainable energy solutions.

“As we stated earlier this month when we announced the signing of the collaboration agreement with the IFC, we are convinced that the development of mining in northwest Argentina is both fundamental and strategic for the economic growth of our country, especially within an international context increasingly demanding critical minerals essential for the energy transition. Together with YPF Luz, this statement gains even more strength and reaffirms our belief that this project addresses the need for mining companies to improve their competitiveness through reliable, efficient, and sustainable energy solutions,” said Fernando Bonnet, CEO of Central Puerto.

Martín Mandarano, CEO of YPF Luz, emphasized: “Argentina has a historic opportunity to position itself as a global leader in the supply of copper and lithium. At YPF Luz, we are committed to providing comprehensive energy solutions to facilitate this goal. This strategic agreement with Central Puerto not only highlights our capability to develop large-scale energy infrastructure but also reflects our vision of collaborating with various industry players. Together, we will drive the infrastructure needed by mining projects, delivering significant benefits to the country, the provinces, and local communities.”

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