Cepsa and EIB sign €285 million loan agreement to finance biofuels plant in Spain
Energy

Cepsa and EIB sign €285 million loan agreement to finance biofuels plant in Spain

The plant is expected to produce up to 500,000 tonnes of second-generation biofuels annually

  • By ICN Bureau | July 01, 2024

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, Andalusia.

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.

“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,” said Gilles Badot, director of EIB operations for Spain and Portugal.  “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.

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.

"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", said Maarten Wetselaar, Cepsa's CEO.

This 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 €372 billion 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.

With this new arrangement, the EIB is continuing to support Cepsa's decarbonisation strategy. It is the third financing operation with Cepsa in the last two years to accelerate this strategy. The previous two were a loan of €80 million for photovoltaic plants in Andalusia and a loan of €150 million for Cepsa’s network of electric charging stations in Spain and Portugal.

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