EIB and Cepsa Ink €285M Loan for Spain's Second-Generation Biofuels Plant

The European Investment Bank (EIB) and Cepsa have agreed on a €285 million loan for building an advanced biofuels plant near the La Rábida Energy Park in Palos de la Frontera, Andalusia.

Cepsa, in collaboration with Bio-Oils, is constructing a plant to manufacture sustainable aviation fuel (SAF) and renewable diesel (HVO) using organic waste like used cooking oil or agricultural residues, promoting the circular economy. Upon completion, the facility aims to process up to 600,000 tonnes of waste annually and produce approximately 500,000 tonnes of second-generation biofuels each year.

These biofuels will be utilized in industries such as aviation, maritime transport, and heavy-duty road transport, addressing challenges posed by decarbonization and electrification. They offer an immediate solution to reduce CO2 emissions in these sectors without requiring modifications to existing engines.

"This loan exemplifies how the EIB drives the energy transition, even in challenging sectors. This project will bolster Spain's position as a leader in biofuels production," stated Gilles Badot, Director of EIB operations for Spain and Portugal. "By backing private firms like Cepsa that are investing in this transition and enhancing their decarbonization strategies, the EIB accelerates the shift toward a sustainable energy model that fosters EU energy autonomy."

Cepsa and Bio-Oils' investment will be entirely in Andalusia, a region with below-average per-capita income in the EU. The project's scale is expected to stimulate local economic growth and job opportunities. Thus, the loan agreement with Cepsa represents a substantial contribution to the EIB's commitment to economic, social, and territorial cohesion.

"We appreciate the EIB's support for this project, pivotal to our Positive Motion strategy and to advancing Spain's and Europe's journey toward essential energy independence," stated Maarten Wetselaar, CEO of Cepsa. "This plant will mark a significant leap forward in producing green molecules, aiming to facilitate immediate decarbonization across land, sea, and air transport by cutting CO2 emissions by up to 90% compared to traditional fuels."

This project aligns with the decarbonization goals of the European Green Deal and contributes to the EIB's efforts under the REPowerEU initiative to enhance energy security and decrease the EU's reliance on fossil fuel imports.

Backed by InvestEU, an EU program aimed at mobilizing over €372 billion in additional investment from 2021 to 2027, this initiative advances one of the program's key objectives: fostering development in the energy sector and promoting a sustainable bioeconomy.

Through this latest agreement, the EIB reaffirms its ongoing support for Cepsa's decarbonization strategy. This marks the third financing initiative with Cepsa in the past two years aimed at accelerating this strategy. Previous operations include an €80 million loan for photovoltaic plants in Andalusia and a €150 million loan for Cepsa's electric charging station network in Spain and Portugal.