EIB and Cepsa sign €285mn loan for biofuels plant in Spain
Published on: Jun 28, 2024
Operation also backed by InvestEU programme to mobilise more than €372 billion of additional investment in 2021-2027.
The European Investment Bank (EIB) and Cepsa sign a €285 million loan agreement for the construction of an advanced biofuels plant to be located next to the ¨La Rábida Energy Park¨ in Palos de la Frontera, Spain.
The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste, advancing the circular economy. Once operational, the facility is expected to process as much as 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels annually.
“Supporting private companies like Cepsa, which are investing in this transition and advancing their own decarbonisation strategies, is one way the EIB is accelerating the transition to a more sustainable energy model that promotes EU energy autonomy,” said Gilles Badot, director of EIB operations for Spain and Portugal.
The investment by Cepsa and Bio-Oils will be made entirely in Andalusia, a cohesion region where per-capita income is below the EU average.
“This plant will enable us to take a giant step forward in the production of green molecules, with the aim of facilitating the immediate decarbonisation of land, sea and air transport by reducing CO2 emissions by up to 90% compared with traditional fuels", said Maarten Wetselaar, Cepsa's CEO.
The biofuels will serve industries such as, aviation, maritime transport and even heavy-duty road transport for which decarbonisation and electrification pose challenges.
