Clean Energy Cepsa, Bio-Oils to Develop Southern Europe’s Largest 2G Biofuels Plant

Related Vendors

Cepsa Lubricantes S.A.

Glatt Ingenieurtechnik GmbH

EDL Anlagenbau Gesellschaft mbH

Pörner Ingenieurgesellschaft mbH

Under a joint venture between Cepsa and Bio-Oils, both the firms will develop the largest 2G biofuels plant in southern Europe with an investment of up to 1 billion euros. The project is expected to produce 500,000 tons of SAF and renewable diesel for land, sea and air transportation annually.

Madrid/Spain – Cepsa and Bio-Oils, Apical’s biofuels entity in Huelva, have created a joint venture to promote the production of second generation (2G) biofuels through the construction of the largest plant in southern Europe, announced by Cepsa last March. The facility, to be located at Cepsa’s La Rábida Energy Park in Palos de la Frontera (Huelva), will entail an investment of up to 1 billion euros, one of the largest private investments in the history of the southern Spanish region of Andalusia.

The new plant will secure the majority of the feedstock supply from organic waste such as agricultural residue or used cooking oils through a global, long-term agreement with Apical, Bio-Oils' parent company, enabling it to address one of the key challenges facing the industry: access to feedstock. 2G biofuels promote the circular economy by using waste for their production that would otherwise end up in landfills.

Cepsa will contribute its technical expertise and experience in the development of large industrial projects and fuel production as well as its knowledge of the European market and the decarbonization goals of its customers in the transport sector. Apical and Bio-Oils will ensure the supply of raw materials and contribute their own expertise in biofuels production.

The new plant, which will create approximately 2,000 direct and indirect jobs during its construction and operation phase, will include two pretreatment units and the capacity for flexible annual production of 500,000 tons of sustainable aviation fuel (SAF) and renewable diesel for land, sea and air transportation. The plant is scheduled to begin operating in the first half of 2026.

The facility will be constructed with the latest technology specifically created for the production of this type of biofuels. Designed as a digital native plant, the new operation incorporates state-of-the-art technology including the latest industry advances in artificial intelligence, internet of things (IoT) and data analysis to maximize process efficiency, and ensure the highest standards of safety and environmental protection.

The sustainable fuels developed in this new plant will save 1.5 million tons of CO2 emissions per year, equivalent to 30 % of emissions in the province of Huelva. The use of biofuels can reduce CO2 emissions by up to 90 % compared to traditional fuels, making biofuels a key element in enabling a fair energy transition to decarbonize transportation, particularly in sectors where electrification is complex, such as heavy road, maritime, and air transportation. Cepsa’s chemical business, will also benefit from this project having access to organic waste feedstocks for the production of their sustainable product portfolio.

The project was presented recently at La Rábida Energy Park with the participation of Juan Manuel Moreno Bonilla, President of the Regional Government of Andalusia; Maarten Wetselaar, Cepsa CEO; Óscar García, Bio-Oils CEO; and Dato’ Yeo How, President, Apical Group.

“This alliance is a decisive step in our strategy to lead biofuels in Spain and Portugal and positions Andalusia as a European benchmark in sustainable energy production and circular economy. Second-generation biofuels are an immediate solution to support our customers’ energy as they can be used in conventional engines, while enabling local development and increased energy autonomy in Europe,” shared Maarten Wetselaar, CEO of Cepsa.

Dato’ Yeo How added: “We believe wider use of SAF and renewable diesel provides significant benefits on a global scale, both in terms of mitigating the effects of climate change and promoting sustainable economic growth. Apical’s ample supply of high-quality second-generation feedstock is key to ensuring the new joint venture delivers on our shared vision to reduce GHG emissions in land, sea and air transport.”

(ID:49409697)