Argentine fertilizer maker Profertil signed a 21-year off-take agreement with power group YPF Luz to supply electricity to one of its industrial plants in the province of Buenos Aires.

“This is the longest power supply agreement in Argentina to date,” Profertil said in a statement.

The deal is one year longer than contracts signed in the regulated market tenders of the government’s RenovAr renewable energy programme.

Profertil said that the granulated urea Ingeniero White plant in the Atlantic port city of Bahia Blanca will have 60% of its power needs coming from wind by 2020, up from 12% today.

The agreement aims to supply 185GWh/year.

YPF Luz, the power generation arm of state-controlled oil and gas company YPF and a joint venture with GE, has been investing in renewable energy generation to supply several industries in the country as they rush to meet the legal target of 20% renewable energy supply by 2025.

So far 1GW of renewables have been contracted for the non-regulated market known as MATER – including for self-supply.

YPF Luz has signed on several companies in the private sector including Toyota and Coca-Cola’s local bottling unit among others. The automaker and the soft drink producer signed 10-year and 15-year PPAs, respectively.

YPF Luz was span off earlier this year with 2.3GW of installed power capacity from fossil fuel plants. It has since been investing in renewables in both the regulated and MATER markets to supply power to YPF and other companies.

Last month, TPF Luz inaugurated the first 50MW stage of the 100MW Manantiales Behr which, together with the 120MW Los Teros wind farm, will supply the non-regulated market.

Wind

YPF Luz signs longest wind PPA thus far in Argentina