BUENOS AIRES – Argentine oil company YPF said it signed a financing agreement on Wednesday with the Inter-American Development Bank (IDB) that opens the way for construction of a wind farm in the southern province of Chubut.
The Inter-American Investment Corporation (IIC), a unit of the IDB, is providing a $200 million loan with a maximum repayment term of nine years to build a 20 sq. kilometer (7.7 sq. mile) wind farm with 30 turbines, YPF said in a statement.
The loan’s $62 million first tranche was disbursed on Wednesday, allowing YPF to start building the wind farm, located 40 kilometers (about 25 miles) northeast of Comodoro Rivadavia, one of the largest cities in Chubut.
The wind farm, which has a projected operational life of 20 years, is being built as part of YPF’s push to generate 20 percent of its electricity from unconventional renewable sources.
The wind-power complex outside Comodoro Rivadavia will “significantly” reduce production costs via “savings from fuel not consumed,” contributing to the “development of renewable energy and the know-how for future projects,” YPF said.