Spanish oil and gas company Cepsa has finalized a EUR 285 million (USD 305 million) loan agreement with the European Investment Bank (EIB) to fund the construction of an advanced biofuels plant in Andalusia, announced today.
The new facility will be located adjacent to the La Rabida Energy Park in Palos de la Frontera and is designed to produce sustainable aviation fuel (SAF) and renewable diesel (HVO) from organic and agricultural waste. Cepsa will undertake the project in collaboration with Bio-Oils, supported by the InvestEU programme.
Upon completion, the plant aims to process up to 600,000 tonnes of waste annually, yielding approximately 500,000 tonnes of second-generation biofuels per year. These biofuels will primarily cater to the aviation and maritime transport sectors, as well as heavy-duty road transportation.
“This financing underscores our commitment to accelerating Cepsa's decarbonisation efforts,” stated a spokesperson from EIB, highlighting the institution's third collaboration with Cepsa in the past two years. Previously, in late 2023, Cepsa received an EUR 80 million loan from EIB to develop two solar farms in Andalusia.
The biofuels plant represents a significant step towards enhancing Spain's renewable energy capabilities and reducing carbon emissions across multiple transport sectors, aligning with broader European sustainability goals.
