EIB and Cepsa Partner on €285 Million Biofuels Plant to Boost Energy Security and Decarbonisation

EIB and Cepsa Partner on €285 Million Biofuels Plant to Boost Energy Security and Decarbonisation

(IN BRIEF) The European Investment Bank (EIB) has allocated a €285 million loan to Cepsa for the development of an advanced biofuels plant in Andalusia, Spain, adjacent to the La Rábida Energy Park. In partnership with Bio-Oils, the facility will convert organic waste such as used cooking oil and agricultural residues into sustainable aviation fuel (SAF) and renewable diesel (HVO), aiming to produce up to 500,000 tonnes of biofuels annually. This initiative supports sectors like aviation and maritime transport by offering a solution to decarbonisation challenges, reducing CO2 emissions significantly compared to traditional fuels. Aligned with the European Green Deal’s objectives, the project enhances energy security and promotes EU independence from fossil fuel imports, bolstered by support from the InvestEU programme to mobilise additional investments in sustainable bioeconomy projects through 2027.

(PRESS RELEASE) LUXEMBOURG, 28-Jun-2024 — /EuropaWire/ — The European Investment Bank (EIB) has signed a €285 million loan agreement with Cepsa for the construction of an advanced biofuels plant in Andalusia, Spain. Located near the La Rábida Energy Park in Palos de la Frontera, the plant, developed in collaboration with Bio-Oils, will convert organic waste like used cooking oil and agricultural residues into sustainable aviation fuel (SAF) and renewable diesel (HVO). Expected to process up to 600,000 tonnes of waste annually, it will produce approximately 500,000 tonnes of second-generation biofuels.

The biofuels from this facility will support sectors such as aviation, maritime transport, and heavy-duty road transport, addressing challenges in decarbonisation and reducing CO2 emissions by up to 90% compared to traditional fuels. The project aligns with the European Green Deal’s decarbonisation goals and contributes to the EIB’s REPowerEU initiative aimed at enhancing energy security and reducing EU dependence on fossil fuel imports.

Cepsa’s CEO, Maarten Wetselaar, emphasized the project’s role in advancing Spain’s and Europe’s energy independence and supporting Cepsa’s decarbonisation strategy. The investment is expected to benefit Andalusia’s economy by fostering growth and creating jobs in a region with below-average per-capita income.

Supported by the InvestEU programme, which aims to mobilise over €372 billion in additional investment from 2021 to 2027, this project underscores the EIB’s commitment to accelerating the transition to sustainable energy models across Europe.

EIB

The ElB is the long-term lending institution of the European Union, owned by the Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the EIB and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Globally, the EIB Group signed €88 billion of new financing in 2023.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Cepsa and sustainability

Cepsa is embarking upon an in-depth transformation of its activities via its Positive Motion 2030 strategy, with the goal of going zero-carbon and helping its customers to overcome their own decarbonisation challenges. To this end, the company is set to invest €8 billion this decade, around 60% of which will go to sustainable businesses linked to electric mobility and the production of green molecules – mainly green hydrogen and biofuels.

Cepsa has created an ambitious roadmap to cut its emissions, ranking among the leading companies in its sector. Specifically, it will reduce its CO2 emissions  (scope 1 and 2) by 55% vs. their 2019 levels by 2030. It aims to achieve net-zero emissions by 2050 and then go further, providing a net-positive contribution. The carbon intensity of its products will be reduced by 15-20% by 2030.

The main sustainability rating agencies recognise Cepsa as a leader in its industry. Sustainalytics has ranked it first among independent oil and gas companies worldwide, for the third year in a row; Moody’s puts it among the top three European energy companies as valued by environmental, social and governance policies and performance; and S&P Corporate Sustainability Assessment has placed it in the top quartile of the global energy sector.

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SOURCE: European Investment Bank