The European Investment Bank (EIB) and Cepsa announced the signing of a €285 million loan agreement. The funds will be used by Cepsa to construct a biofuels plant.
The plant, located near the La Rábida Energy Park, will be constructed in collaboration with Bio-Fuels, according to the EIB press release.
The proposed biofuel plant will produce sustainable aviation fuel (SAF) and renewable diesel (HVO). Organic waste, such as cooking oil or agricultural waste, will be utilized to produce biofuels.
Firmamos un préstamo de 285 millones de euros con el @EIBtheEUbank para financiar la construcción junto a #BioOils de la mayor planta de #biocombustibles 2G del sur de Europa.
Más información https://t.co/9gTImhnyqK pic.twitter.com/hrZYmSqEvQ
— Cepsa (@Cepsa) June 27, 2024
Once the plant is operational, the facility will have the capacity to process nearly 600,000 tons of waste and produce nearly 500,000 tons of second-generation biofuels per year.
Also read: Europe will need to invest more in sustainable aviation fuels to meet Net-Zero targets
The produced biofuel will be used in hard-to-abate sectors such as aviation, maritime transport, and heavy-duty road transport.
Biofuels serve as a potential solution to reduce CO2 emissions in these sectors without changing the existing engine.
Gilles Badot, director of EIB operations for Spain and Portugal, said, “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 making Spain one of the leading countries in the production of biofuels.”
He added, “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.