The Olavarría wind farm as a sustainability driver for Cementos Avellaneda 

Cementos Avellaneda, a company owned by Molins and Votorantim Cimentos and one of Argentina’s leading cement companies, is taking a strategic step towards decarbonizing the industry with the development of the Cementos Avellaneda Wind Farm (PECASA). This project represents a milestone in Argentina’s energy transition. Located in Olavarría, Buenos Aires Province, the wind farm will enable the self-supply of 47% of the industrial plant’s electricity demand, consolidating a more efficient, competitive, and environmentally friendly industrial model. 

The push for renewable energy in Argentina has gained momentum following the regulatory framework established by Law 27.191 and Decree 531/2016, which set progressive targets for incorporating clean energy into the electrical grid. Cementos Avellaneda set out not only to comply with these legal requirements but also to turn them into a strategic opportunity to transform its energy model. 

After a thorough analysis of various alternatives, the company opted for a self-generation scheme based on wind power. Compared to options such as joint purchases through the Wholesale Electricity Market Administrator (CAMMESA) or contracts in the Renewable Energy Term Market (MATER), self-generation emerged as the most efficient and sustainable path, reducing costs associated with electricity transmission and ensuring long-term price predictability. But this decision goes beyond the economic aspect: it also reflects a strategic vision and value-driven approach, aligned with Cementos Avellaneda’s commitment to advancing toward a more environmentally responsible production model. Investing in proprietary renewable generation is also a concrete way to contribute to the energy transition, foster a low-carbon economy, and generate a positive impact on the territory and the community. 

Infrastructure to boost renewable energy 

The wind farm will be located on 450 hectares adjacent to the Cementos Avellaneda plant. Its strategic location ensures efficient access to the Argentine Interconnection System (SADI) through a 13 km, 33kV medium-voltage line to the Calera Avellaneda substation. 

The infrastructure works include more than 12 km of internal roads, 33,500 m² of platforms for turbine assembly, and a dedicated substation to facilitate connection with the national power grid. The project supports local employment during both construction and operational phases, promoting the economic development of the region. 

One of the project’s key drivers is its positive environmental impact. It is estimated that the wind farm will enable annual savings of 119,824 tons of CO₂ equivalent, reinforcing Cementos Avellaneda’s commitment to climate change mitigation and the adoption of sustainable industrial practices. Additionally, the project aligns with Argentina’s international commitments, contributing to the goal of achieving 20% renewable energy generation nationwide by 2025.  

Economic evaluation and strategic return 

From an economic standpoint, the project represents an investment of approximately USD 80 million. Comparative analysis against other market options demonstrates that the self-generation model offers the best balance between cost, predictability, and environmental benefits. 

The return is measured not only in economic terms but also in energy competitiveness, corporate reputation, and operational resilience. With PECASA, Cementos Avellaneda ensures energy supply at a stable price, shields its operations from market volatility, and strengthens its positioning as an industrial leader in sustainability. 

The project has been made possible thanks to a partnership with YPF Luz, a key player in renewable energy development and operation in Argentina. YPF Luz has contributed its technical and financial expertise to the design, construction, and future operation of the wind farm. 

The agreement is structured under an ESCO BOO (Energy Service Company – Build, Own, Operate) model, whereby YPF Luz assumes full responsibility for the investment and management of the wind farm, supplying energy to Cementos Avellaneda at a competitive, pre-agreed price. This model enables the industrial client to access renewable energy without bearing the risks or upfront costs of the project. 

A technological hub for a more sustainable industry 

The Cementos Avellaneda Wind Farm will feature nine Nordex N163/6X wind turbines, each with a capacity of 7 MW, achieving a total installed capacity of 63 MW. This capacity will be distributed across two installations: 

• Four turbines totaling 28 MW will be dedicated to Cementos Avellaneda’s self-supply. 

• Five turbines with a total capacity of 35 MW will sell their energy in the MATER market. 

The choice of Nordex N163/6X technology is based on criteria of efficiency, robustness, and generation capacity. These turbines, with 119-meter-high towers and 163-meter-diameter rotors, are among the most advanced on the market. Their estimated capacity factor is 47.2%, enabling an annual renewable energy production of 254 GWh—equivalent to the consumption of over 72,000 households. 

The Olavarría Wind Farm symbolizes a new phase in the relationship between industry and energy. It is not merely about complying with regulations but embracing a model that combines profitability, efficiency, and environmental responsibility. This project demonstrates that public-private collaboration and technological innovation can be real drivers of transformation. 

With operations set to begin in the first quarter of 2026, PECASA will not only provide clean energy to an industrial plant but will also foster a paradigm shift in Argentina’s cement sector—a firm step toward a more sustainable, resilient industry ready to face the challenges of the future. 

Over a century of history at the forefront of innovation 

With over a century of experience, Cementos Avellaneda has been dedicated to manufacturing and marketing construction products, including cement, lime, concrete, adhesives, mortars, pastes, and aggregates. The company’s commitment to sustainability has led it to make significant investments in modern technologies aimed at reducing its environmental footprint throughout its entire value chain. It has also promoted circular economy practices through co-processing and various initiatives focused on protecting and preserving the natural environment at its facilities. 

The company’s dedication to environmental stewardship and sustainability is intrinsically linked to its business model. Cementos Avellaneda firmly believes in managing and conducting its industrial activities sustainably to achieve its decarbonization goals, integrating the circular economy throughout the lifecycle of its products. 

Published in International Cement Review