Cepsa and Bio-Oils Begin Construction on the Largest 2G Biofuels Plant in Southern Europe with Investment of 1.2 Billion Euros

February 23, 2024

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(Crepsa) -The facility will double Cepsa's and Bio-Oils' current second-generation biofuels production capacity to 1 million tons

-The new plant will begin production in 2026 and is expected to generate 2,000 direct and indirect jobs during construction and operation

-2G biofuels, produced from agricultural waste or used cooking oils, are an immediate, circular economy solution to decarbonize land, sea, and air transport without the need to change existing engines

-Juan Manuel Moreno Bonilla, President of the Regional Government of Andalusia said: “Andalusia is ready to become Europe’s major producer and distributor of clean energy, playing a key role in the irrevocable goal of decarbonizing the planet. This future biofuel plant by Cepsa is a clear and valuable example, a project included in our Project Accelerator Unit, allowing it to be processed in just six months, less than half of what is usually required”

-Teresa Ribera, Third Vice-President and Minister for the Ecological Transition and the Demographic Challenge, stated: “It is not enough to just change the color of molecules or electrons; the industries behind them, the services behind them, are a great opportunity to reindustrialize and modernize our productive fabric. That is why we want to include the industrial value chain in the change process and why we want to dedicate more than 750 million euros to this program, ensuring that the heavy goods needed for success are produced in Spain”

-Maarten Wetselaar, Cepsa CEO, highlighted: “Today we are breaking ground on our second-generation biofuels plant, the first major milestone of our Positive Motion strategy. This strategic project for Spain and Andalusia will make us a European benchmark in the field of green molecules and facilitate the immediate decarbonization of sectors that cannot run on electrons, like aviation. This is the start of a new chapter for Cepsa and this region that will generate quality employment and a new era of industrialization”

-Pratheepan Karunagaran, Executive Director at Apical, said: "The global production of SAF is expected to triple in 2024, compared to the 2023 levels, reaching 1.5 million tons. Yet, the availability of sustainably available feedstock remains a challenge for many countries. As we continue to expand Apical’s global footprint and capacities, the availability of waste and residue is set to grow in tandem, enabling value-added partnerships to be forged for our waste stream to drive the production and adoption of SAF. Our 2G biofuels plant with Cepsa, which will be the largest aviation fuel processing facility in southern Europe, is an excellent example of how industry players can come together to unlock the potential of SAF and scale up adoption in an affordable manner”

Cepsa and Bio-Oils, a subsidiary of Apical, are beginning construction of the largest second-generation biofuels plant in southern Europe. This facility, which will flexibly produce 500,000 tons of sustainable aviation fuel (SAF) and renewable diesel (hydrogenated vegetable oil or HVO) annually, will allow the joint venture formed by both companies to double its current production capacity. The new 2G biofuels plant, along with the existing facilities operated by Cepsa and Bio-Oils in Huelva, Spain, will form the second largest renewable fuel complex in Europe, with a total production capacity of 1 million tons per annum.

The new facility, whose start-up is planned for 2026, will be built in Palos de la Frontera (Huelva), next to La Rábida Energy Park. Its development involves a 1.2-billion-euro investment and the creation of 2,000 direct and indirect jobs during the construction and operation phases.

The start of construction of this project was celebrated today at a ceremony attended by Juan Manuel Moreno Bonilla, President of the Regional Government of Andalusia, Teresa Ribera, Third Vice-President and Minister for the Ecological Transition and the Demographic Challenge, Maarten Wetselaar, CEO of Cepsa, Anderson Tanoto, Managing Director, RGE, which manages a group of resource-based manufacturing companies including Apical and Bio-Oils, and Pratheepan Karunagaran, Executive Director of Apical.

Juan Manuel Moreno Bonilla said: “Andalusia is ready to become Europe’s major producer and distributor of clean energy, playing a key role in the irrevocable goal of decarbonizing the planet. This future biofuel plant by Cepsa is a clear and valuable example, a project included in our Project Accelerator Unit, allowing it to be processed in just six months, less than half of what is usually required.”

Teresa Ribera stated: “It is not enough to just change the color of molecules or electrons; the industries behind them, the services behind them, are a great opportunity to reindustrialize and modernize our productive fabric. That is why we want to include the industrial value chain in the change process and why we want to dedicate more than 750 million euros to this program, ensuring that the heavy goods needed for success are produced in Spain.”

Maarten Wetselaar noted: “Today we are breaking ground on our second-generation biofuels plant, the first major milestone of our Positive Motion strategy. This strategic project for Spain and Andalusia will make us a European benchmark in the field of green molecules and facilitate the immediate decarbonization of sectors that cannot run on electrons, like aviation. This is the start of a new chapter for Cepsa and this region that will generate quality employment and a new era of industrialization.”

Pratheepan Karunagaran explained: "The global production of SAF is expected to triple in 2024, compared to the 2023 levels, reaching 1.5 million tons. Yet, the availability of sustainably available feedstock remains a challenge for many countries. As we continue to expand Apical’s global footprint and capacities, the availability of waste and residue is set to grow in tandem, enabling value-added partnerships to be forged for our waste stream to drive the production and adoption of SAF. Our 2G biofuels plant with Cepsa, which will be the largest aviation fuel processing facility in southern Europe, is an excellent example of how industry players can come together to unlock the potential of SAF and scale up adoption in an affordable manner.”

This new plant, which will be built with the latest technology for the production of renewable fuels, will have a minimal environmental impact. Thanks to the consumption of renewable hydrogen, 100% renewable electricity and different heat recovery and energy efficiency systems, this facility will emit 75% less CO2 than a traditional biofuel plant and is designed to achieve net zero emissions in the medium term. Likewise, it will not consume fresh water, but will only use reclaimed water, and its water emissions will have a minimal impact on the ecosystem thanks to a powerful water treatment plant. The facility will also be digitally native and will incorporate the latest advances for the industry in artificial intelligence, internet of things (IoT), and data analysis.

This facility will enable the development of other key projects to reposition Spain and Andalusia in the international energy landscape. In addition to SAF and renewable diesel (HVO), the plant will also produce biogas, a fundamental raw material for the production of green hydrogen, essential for the decarbonization of industry such as this very plant or the energy park alongside it, or for the production of fertilizers. Additionally, another product is captured from the treatment of biogas – biogenic CO2 – which is essential for the production of green methanol to decarbonize maritime transport. As such, this project is a key element of the entire Andalusian Green Hydrogen Valley ecosystem being led by Cepsa.

The initial work for the development of these facilities will focus on earthmoving and land improvements, urbanization, and infrastructure foundation, as well as the start of marine construction at the southern pier of the Port of Huelva given that the project also encompasses the development of auxiliary facilities in the port necessary for its operation.

The new plant will secure the majority of its raw material supply from organic waste such as agricultural waste and used cooking oils through a global, long-term agreement with Apical, enabling it to address one of the main challenges facing the industry: access to raw materials. 2G biofuels promote the circular economy by using waste for their production that would otherwise be discarded or end up in landfills.

Compared to traditional fuels, the renewable fuels developed in this complex by Cepsa and Bio-Oils will prevent the emission of 3 million tons of carbon dioxide (CO2) per year, equivalent to 4% of road transport emissions in Spain.

The construction of this facility will involve the installation of 590 kilometers of pipelines (more than the distance separating the cities of Huelva and Madrid) and 1,400 kilometers of cable (almost the distance between Huelva and Paris).

Committed to the energy transition

Biofuels are a present-day solution to accelerate the decarbonization of transportation, a sector that currently accounts for 15% of global CO2 emissions. They are a strategic technology for achieving an immediate energy transition that can reduce CO2 emissions by up to 90% compared to traditional fuels, making them a key element in promoting the decarbonization of land, sea, and air transportation.

As part of its 2030 Positive Motion strategy, Cepsa is driving the development of an ecosystem focused on accelerating its own decarbonization and that of its customers through the production of green molecules, mainly renewable hydrogen (and its derivatives) and 2G biofuels, to become a leader of the energy transition. The creation of one of the largest renewable fuel complexes in Europe is part of Cepsa's goal of leading 2G biofuel production in Spain and Portugal. Under that plan, the Company is developing an annual production capacity of 2.5 million tons of biofuels this decade, of which 800,000 tons will be SAF, enough sustainable jet fuel to fly across the planet 2,000 times. Since 2022, Cepsa has been producing and marketing 2G biofuels to its customers in the aviation, maritime, and land sectors. Last year it became the first company to permanently offer SAF (produced in its facilities from agricultural waste and used cooking oils) at five of Spain’s main airports: Madrid, Barcelona, Palma de Mallorca, Seville and Malaga. In addition, the energy company also offers these biofuels in 60 Spanish ports.

Operating at the forefront of the bioeconomy, Apical is well-positioned to accelerate energy transition through embracing circularity as a core pillar of its sustainable business strategy. By implementing a waste-to-value approach, the company optimizes its integrated supply chain to access broad range of agricultural waste and residues feedstock and upcycle them into renewable fuels such as sustainable aviation fuel through this new state-of-the-art biofuels plant. READ MORE

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Excerpt from Topsoe:

Cepsa and Bio-Oils’ new plant will begin production in 2026 and is expected to produce 500,000 tons of Sustainable Aviation Fuel (SAF) and renewable diesel annually.
Topsoe will deliver its HydroFlex™ technology, which enables the production of SAF and renewable diesel from renewable feedstocks including agricultural waste, fats, oils and greases.
The licensing agreement is between Topsoe and Cepsa and represents Topsoe’s first HydroFlex™ order in Spain.

Topsoe, a global leader in carbon emission reduction technologies, has signed an agreement with Cepsa, a leading international company committed to sustainable mobility. According to the agreement, Topsoe will provide its HydroFlex™ technology for the production of SAF and renewable diesel at Cepsa’s and Bio-Oils’ new second-generation biofuels plant in Palos de la Frontera, Spain.

Elena Scaltritti, Chief Commercial Officer at Topsoe, said:

“We are excited to have been selected as the technology provider for this important project. The demand for SAF and renewable diesel is there, but supply is still lagging behind. Renewable fuels will be absolutely critical to support the energy transition – in particular in sectors such as long-distance transportation that are difficult to electrify. Cepsa delivers a meaningful contribution to decarbonizing the transportation sector, and we’re proud to be working with them.”

The plant, which began construction in February 2024, is expected to flexibly produce 500,000 tons of SAF and renewable diesel annually. With this new plant Cepsa and Bio-Oils will be doubling their total renewable fuels production capacity to 1 million tons per year and thereby creating one of the largest renewable fuel complexes in Southern Europe.

The production serves to address the rapidly growing demand for SAF. As cited by the International Energy Agency’s Net Zero Scenario, over 10% of fuel consumption in aviation needs to be SAF by 2030 to stay on course for net zero CO2 emissions by 2050. In 2022, the International Air Transport Association estimated global SAF production to make up only around 0.1% to 0.15% of total jet fuel demand.

José Manuel Martínez, Director of Technology, Projects, and Services at Cepsa, said:
“This new 2G plant is central to our Positive Motion strategy and will set the European benchmark in the field of green molecules, directly supporting the rapid decarbonization of sectors that cannot run on electrons, like aviation. The new facility will emit 75% less CO2 than a traditional biofuel plant and is designed to achieve net zero emissions in the medium term. In Topsoe we have identified an outstanding partner, with proven technology and a track record of successfully delivering on its promises. We look forward to progressing construction to significantly increase production of this key renewable fuel.”

About HydroFlex™
With HydroFlex™, customers can convert various fats, oils and greases into drop-in renewable jet and diesel that meet all globally accepted specifications for these fuels. Topsoe’s HydroFlex™ can be deployed in both grassroots units and revamps for co-processing or fully renewable applications.

About Cepsa
Cepsa is a leading international company committed to sustainable mobility and energy with a solid technical experience after more than 90 years of activity. The company also has a world-leading chemicals business with increasingly sustainable operations.

Under its Positive Motion strategic plan for 2030, Cepsa aims to be a leader in sustainable mobility, biofuels, and green hydrogen in Spain and Portugal, and to become a benchmark in the energy transition. The company places customers at the heart of its business and will work with them to help them achieve their decarbonization objectives.

ESG criteria inspire everything Cepsa does as it advances toward its net positive objective. Over the course of this decade, it will reduce Scope 1 and 2 CO2 emissions by 55% and the carbon intensity index of energy products sold by 15-20% versus 2019, with the goal of achieving net zero emissions by 2050.

About Topsoe
Topsoe is a leading global provider of technology and solutions for the energy transition. We combat climate change by helping our customers and partners achieve their decarbonization and emission reduction goals. 

Based on decades of scientific research and innovation, we offer world-leading solutions for transforming renewable resources into fuels and chemicals for a sustainable world, and for efficient and low-carbon fuel production and clean air.

We were founded in 1940 and are headquartered in Denmark, with over 2,800 employees serving customers all around the globe. To learn more, visit www.topsoe.com. READ MORE