The European Investment Bank (EIB) and Spanish energy company Cepsa have signed a €285m loan agreement for the construction of an advanced biofuels plant to be located in Palos de la Frontera, Andalusia.
The plant, which Cepsa is building together with Bio-Oils, will produce sustainable fuels including 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 600,000t of waste and produce up to 500,000t of second-generation biofuels annually.
The biofuels will serve industries such as maritime transport for which decarbonisation and electrification pose challenges. Biofuels are seen as an immediate solution to reduce CO2 emissions from this sector, without making changes to existing engines.
Gilles Badot, director of EIB operations, Spain and Portugal, said: “This loan is a clear example of how the EIB promotes the energy transition also in hard to abate sectors. This project will contribute to make Spain one of the leading countries in the production of biofuels. 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.”
Cepsa CEO Maarten Wetselaar added: “We are grateful for the EIB’s support to this project, which is key to our Positive Motion strategy and to Spain’s and Europe’s progress towards the necessary energy independence. 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.”
The project supports the decarbonisation objectives of the European Green Deal. It is also part of the EIB’s action plan to support REPowerEU in ensuring energy security and reducing EU dependence on fossil-fuel imports. The project is supported by InvestEU, an EU programme to mobilise more than €372bn of additional investment in the period 2021-2027. It furthers one of the programme’s main objectives: developing the energy sector and the sustainable bioeconomy.
Image: Cepsa and EIB bio-fuel plant finance agreement (source: Cepsa)
