Cepsa, EIB ink loan agreement for advanced biofuels plant in Andalusia

In a significant move towards sustainable energy, the European Investment Bank (EIB) has partnered with Cepsa to fund the construction of a pioneering advanced biofuels plant. The €285 million loan agreement facilitates the establishment of this facility adjacent to the La Rábida Energy Park in Andalusia, aiming to boost the region’s economy and advance Europe’s energy independence.

The plant, a collaborative endeavor between Cepsa and Bio-Oils, is set to utilize organic waste such as used cooking oil and agricultural remnants to produce sustainable aviation fuel (SAF) and renewable diesel (HVO). With an expected annual output of up to 500,000 tonnes of second-generation biofuels, the facility will process approximately 600,000 tonnes of waste, significantly contributing to the circular economy.

This initiative is particularly crucial for industries like aviation, maritime transport, and heavy-duty road transport, where decarbonization remains challenging. Biofuels present an immediate solution to reduce CO2 emissions by up to 90% compared to conventional fuels, without necessitating modifications to existing engines.

Gilles Badot, EIB Director for Spain and Portugal, highlighted the project’s alignment with European Union goals: “This loan is a clear example of how the EIB promotes the energy transition in hard-to-abate sectors, making Spain a leader in biofuel production and advancing EU energy autonomy.”

The investment is expected to have a significant impact on Andalusia, a cohesion region with a per-capita income below the EU average. The project will stimulate local economic growth and job creation, aligning with the EIB’s commitment to economic, social, and territorial cohesion.

Cepsa’s CEO, Maarten Wetselaar, expressed gratitude for the EIB’s support: “This project is pivotal to our Positive Motion strategy and to Spain’s and Europe’s progress towards necessary energy independence. It enables us to advance in producing green molecules that facilitate immediate decarbonization of land, sea, and air transport.”

The project also aligns with the objectives of the European Green Deal and supports the EIB’s action plan to back REPowerEU, which aims at enhancing energy security and reducing EU dependency on fossil fuel imports. Additionally, it benefits from the InvestEU program, designed to mobilize significant investments in energy and the sustainable bioeconomy.

This financing marks the third operation between the EIB and Cepsa in two years, underscoring their continued commitment to accelerating decarbonization efforts. Previous collaborations included financing for photovoltaic plants and a network of electric charging stations across Spain and Portugal.

This strategic partnership and investment highlight a robust commitment to environmental sustainability and economic growth. By leveraging the region’s resources and the EIB’s financial support, Cepsa is not only advancing its decarbonization strategy but also contributing to the broader European goal of energy independence and sustainability.