The European Investment Bank (EIB) and Cepsa have signed a 285 million euro loan to fund the construction of a second generation biofuel plant located next to the La Rábida Energy Park in Palos de la Frontera, Huelva. (Source: EIB)
The plant, being developed by Cepsa in collaboration with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO) from organic waste, including used cooking oil and agricultural residues, among other feedstocks. When fully operational, the facility is slated to process up to 600,000 tonnes per year of waste to yield as much as 500,000 tonnes per year of second generation biofuels, advancing the circular economy in the region. (Source: EIB)
These biofuels will be directed to sectors where decarbonization and electrification pose greater challenges, such as aviation, shipping, and heavy-duty road transport. Biofuels offer an immediate means to cut CO2 emissions in these sectors without requiring changes to existing engines. (Source: EIB)
Gilles Badot, the EIB Operations Director for Spain and Portugal, remarked that the loan is a clear example of how the EIB supports energy transition even in hard to decarbonize sectors. The project contributes to positioning Spain as a leader in biofuel production. By backing companies that invest in this transition and advance their own decarbonization strategies, the EIB accelerates a more sustainable energy model and strengthens Europe’s energy autonomy. (Source: EIB)
Investment by Cepsa and Bio-Oils occurs entirely in Andalusia, a cohesion region where per capita income lags behind the EU average. Given the project’s scale, it is expected to positively affect the local economy by stimulating growth and job creation. The loan to Cepsa therefore aligns with the Bank’s commitment to economic, social, and territorial cohesion. (Source: EIB)
Speaking on behalf of the project, the Cepsa executive highlighted the support as pivotal for the company’s Positive Motion strategy and for Europe to achieve energy independence. The plant will enable a major step forward in producing green molecules, with the aim of expediting immediate decarbonization of land, sea, and air transport. Emissions could be reduced by up to 90 percent compared with traditional fuels. This project supports the European Green Deal decarbonization targets and is part of BEI’s actions under the REPowerEU plan to guarantee energy security and lessen EU dependence on fossil fuel imports. It also benefits from InvestEU, the EU program designed to mobilize more than 372 billion euros of additional investments from 2021 to 2027, and advances the development of the energy and bioeconomy sectors. This represents the third BEI financing operation for Cepsa in the past two years as part of accelerating its decarbonization strategy, following earlier loans for solar power plants in Andalusia and for expanding Spain and Portugal’s electric charging network. (Source: EIB)
In 2023, the EIB Group provided over 21 billion euros in financing to strengthen Europe’s energy security. In Spain alone, the commitment reached 4.513 billion euros, supporting projects in renewable energy, energy efficiency, electricity networks, and storage systems. These investments help Europe accelerate the shift to sustainable energy and reduce dependence on fossil fuel imports. (Source: EIB)
In July 2023, the EIB Board of Directors approved boosting REPowerEU funding to 45 billion euros to end European reliance on fossil fuel imports. The Bank also widened eligible sectors to drive investment in EU manufacturing using cutting-edge, zero-emission technologies. This additional financing will be disbursed through 2027, with a total expected mobilization of more than 150 billion euros in investments across targeted sectors. (Source: EIB)
The European Investment Bank is the long-term financing arm of the European Union, owned by its member states. It finances solid projects that help meet EU policy goals, promoting competitiveness, innovation, sustainable development, social and territorial cohesion, and a just and swift transition to climate neutrality. The BEI Group, which includes the BEI and the European Investment Fund, reported signed financing in Spain in 2023 of 11.4 billion euros, with roughly 6.8 billion euros directed to climate action and environmental sustainability. The Group overall signed 88.0 billion euros in new financing in 2023. (Source: EIB)
The InvestEU program provides the EU with crucial long-term financing by mobilizing substantial public and private funding to support a sustainable recovery. It also helps attract private investments aligned with EU policy priorities such as the Green Deal and the digital transition. InvestEU brings together the EU’s prior financial tools under one umbrella to simplify, streamline, and increase the flexibility of project funding in Europe. The program comprises three elements: the InvestEU Fund, the InvestEU Advisory Center, and the InvestEU Portal. The Fund leverages the EU budget guarantee of 26.2 billion euros to back projects, expand partners’ risk capacity, and mobilize at least 372 billion euros in additional investments. (Source: EIB)
Cepsa and Sustainability
The 2030 strategy, Positive Motion, drives a deep transformation at Cepsa with the goal of decarbonizing operations and helping customers tackle their own decarbonization challenges. The company plans to invest roughly 8 billion euros this decade, with around 60 percent allocated to sustainable mobility and the production of green molecules, notably green hydrogen and biofuels. (Source: Cepsa)
Cepsa has laid out an ambitious roadmap to cut emissions, aiming to reduce CO2 emissions (scope 1 and 2) by 55 percent by 2030 relative to 2019 levels and to achieve net zero emissions by 2050, with an even higher ambition beyond that. The intensity of carbon in its products is targeted to fall by 15 to 20 percent by 2030. (Source: Cepsa)
Independent sustainability rating agencies recognize Cepsa as a sector leader. Sustainalytics has ranked it first among global independent oil and gas companies for three consecutive years, Moody’s lists Cepsa among Europe’s top three in ESG policy and performance, and S&P CSA places it as a global co-leader in sustainability for its sector. (Source: Cepsa)