EIB, Cepsa sign $305m agreement to develop SAF/HVO site

The loan agreement was signed between the two companies.

The European Investment Bank (EIB) and Spanish multinational oil and gas company Cepsa announced that they have signed a €285m ($305m) loan agreement for the construction of an advanced biofuels plant in Palos de la Frontera, Andalusia.

The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste, advancing the circular economy.

Once operational, the facility is expected to process as much as 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels annually.

“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 make Spain one of the leading countries in the production of biofuels,” said Gilles Badot, director operations for Spain and Portugal, EIB. 

“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.

This loan agreement is in line with decarbonisation objectives of the European Green Deal and part of EIB’s action plan to support REPowerEU in reducing EU dependence on fossil-fuel imports.

“We are grateful for the EIB’s support to this project, which is key to our Positive Motion strategy and to Spain’s and Europe’s progress towards the necessary energy independence. This plant will enable us to take a giant step forward in the production of green molecules, with the aim of facilitating the immediate decarbonisation of land, sea and air transport by reducing CO2 emissions by up to 90% compared with traditional fuels”, said Maarten Wetselaar, Cepsa’s CEO.

This is EIB’s third financing operation with Cepsa in the last two years.

The previous two were a loan of €80m ($85.6m) for photovoltaic plants in Andalusia and a loan of €150m ($160.6m) for Cepsa’s network of electric charging stations in Spain and Portugal.