Cepsa and Apical have formed a joint venture aimed at boosting biofuel production through a second-generation (2G) facility. The project marks the largest investment in the sector in Southern Europe and was announced by Cepsa in March.
The new complex will be located in Palos de la Frontera, Huelva, within the La Rábida Energy Park. The project represents a 1 billion euro investment, one of the biggest private bets in Andalusia’s recent history.
According to a press release, the facility will source most of its raw materials from organic waste, such as agricultural byproducts and used cooking oils, via a long-term global agreement with Apical and Bio-Oils. This approach helps address a central industry challenge: securing reliable raw material supply.
circular economy
The 2G biofuels program promotes a circular economy by converting waste that would otherwise end up in landfills into valuable fuels. Cepsa aims to help its transportation customers meet decarbonization targets while bringing its own expertise in large-scale industrial projects, fuel production, and European market dynamics to the table. Apical and Bio-Oils will contribute raw materials and share their know-how in biofuel production.
The project was presented at La Rábida Energy Park, with attendees including the president of the Andalusian Government, Juanma Moreno; Maarten Wetselaar, CEO of Cepsa; Óscar García, CEO of Bio-Oils; and Dato’ Yeo How, chairman of Grupo Apical.
Moreno underscored the government’s belief in public-private collaboration to tackle such large initiatives, noting that there is no substitute for a joint effort. He highlighted sustained investment in Huelva and Andalusia and praised the project for creating jobs and signaling confidence in the regional economy.
Wetselaar called the alliance a decisive step for pioneering biofuels in Spain and Portugal, positioning Andalusia as a cornerstone for sustainable energy and circular economy production in Europe.
Óscar García, CEO of Bio-Oils, pointed out that Cepsa has long been Bio-Oils’ major customer, stressing the advantages of proximity and the use of the Reina Sofia pier for loading and unloading. He described the joint venture as a natural evolution of the relationship.
Dato’ Yeo How, president of Apical, spoke about the broader benefits of expanding SAF and renewable diesel usage, emphasizing climate action and sustainable economic growth on a global scale.
He noted that Apical’s broad supply of high-quality second-generation materials is essential to ensure the new venture meets the shared goal of reducing greenhouse gas emissions from land, sea, and air transport.
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The new facility is expected to create around 2,000 jobs during construction and operation, featuring two pretreatment units and a flexible production capacity of 500,000 tons of SAF and renewable diesel for transport across land, sea, and air. Commissioning is targeted for the first half of 2026.
The plant will employ cutting-edge technology designed specifically for 2G biofuel production. It will be a digitally native facility, integrating the latest advances in artificial intelligence, IoT, and data analytics to maximize efficiency and uphold high safety and environmental standards.
Sustainable fuels from the project are expected to prevent about 1.5 million tons of CO2 emissions each year, which would account for roughly 30% of emissions in the Huelva province.
Compared with conventional fuels, biofuels can reduce CO2 emissions by up to 90%, making them a critical part of an equitable energy transition and the decarbonization of transport, especially in sectors where electrification is challenging such as heavy road, maritime, and air transport.
Cepsa’s Chemicals division will benefit from access to organic-waste-derived feedstock for the production of sustainable products.
Second-generation biofuels are positioned as an immediate solution to support customers’ energy transitions, enabling continued use of existing engines while fostering local development and greater energy autonomy in Europe.
commitment to sustainability
The factory aligns with Cepsa’s objective to lead 2G biofuel production in Spain and Portugal. By 2030, the company aims to reach an annual production capacity of 2.5 million tons of biofuels, including 800,000 tons of SAF to serve global aviation needs.
The alliance supports Europe’s policy framework, including the RefuelEU Aviation initiative, which seeks to boost aviation biofuel supply and demand. Targets include 2% in 2025, 5% in 2030, and 63% in 2050, helping position Spain as a reference point for SAF supply to airlines.
Under its Positive Motion strategy, Cepsa is fostering an ecosystem to accelerate decarbonization with green molecules, particularly renewable hydrogen and 2G biofuels, aligning with broader energy-transition goals.
The company’s strategy includes a robust plan to cut emissions significantly and to drive net-zero ambitions by 2050, while also adding value to local communities through sustainable projects. The push for biofuels supports several of the 2030 Agenda’s Sustainable Development Goals, including affordable and clean energy, decent work and economic growth, responsible production and consumption, and climate action.