CEPSA AND BIO-OILS BEGIN CONSTRUCTION ON THE LARGEST 2G BIOFUELS PLANT IN SOUTHERN EUROPE

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.

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 kilometres of pipelines (more than the distance separating the cities of Huelva and Madrid) and 1,400 kilometres of cable (almost the distance between Huelva and Paris).