Millions of people refuel at around 1,500 Cepsa service stations across Spain each day. Yet the company’s reach goes beyond fueling cars. Detergent raw materials produced in house have helped Cepsa Química become a global player, with a significant share in the worldwide detergent market. In Spain, the public is familiar with Cepsa through its stations and refineries, but many may not know the chemistry division that powers these products. The division commands a sizable global presence and is aiming to expand its influence, targeting a 20% market share in the years ahead, according to statements by the division’s director, José María Solana, in a conversation with Prensa Ibérica’s El Periódico six months after taking office. Solana previously held the role of global commercial director at Cepsa Química.
Two years ago, Cepsa began the process of selling this subsidiary, though after evaluating several options the plan was shelved and the core business was retained as essential. The chemical division operates seven production plants, with the main site in Spain at Palos de la Frontera, Huelva, and another at Puente Mayorga, Cádiz. The division maintains a global footprint that includes operations in Canada, Brazil, Indonesia, Germany, and China. In 2022 the enterprise reported an EBITDA of 382 million euros, representing 13.4% of the group’s total earnings.
Beyond detergent raw materials, the portfolio includes phenol, which the company positions as a world leader. The principal application of phenol is the production of polycarbonate plastics used in automotive components and wind turbine blades. Acetone is another key product routed through the same facilities, with broader applications spanning textiles, electronics, food, and pharmaceuticals. Solana emphasizes that the aim is to reinvest every product in the petrochemical stream into green chemistry, linking energy conversion to a lower environmental impact as a strategic priority.
“We cannot afford a Europe that pays twice as much for energy as the rest of the world.”
Cepsa is advancing a strategic plan called Positive Motion, which envisions investments of up to eight billion euros through 2030. While exploration and production will remain a primary revenue source, the company is pushing toward greener operations. The goals include cutting CO2 emissions by 55% by 2030 relative to 2019 and reducing the carbon intensity of its products by 15% to 20%. Solana argues that Europe must defend itself by building a competitive, industry-led economy that sets itself apart from competitors not prioritizing decarbonization. He advocates curbing imports of non-decarbonized products while expanding domestic, low-carbon manufacturing capabilities.
Reinvent chemistry
The transformation begins with reducing reliance on natural gas and increasing the share of gas sourced from renewables. The aim is to become less dependent on imports for electricity, renewable energy, and decarbonized products. A standout initiative is green hydrogen production in Huelva and the San Roque refinery in Cádiz, part of a broader Green Hydrogen Valley in Andalusia. Plans include exporting hydrogen as ammonia to Rotterdam by sea, marking a step toward European energy independence. Additional projects include the construction of 15 biomethane plants fed by waste streams.
“My big goal and personal commitment is to help reinvent chemistry so that within a few years we will be leaders in the next range of renewable products.”
Beyond energy, the company has set ambitious chemistry targets as well. By 2026, 30% of sales are planned to come from low-carbon products. Solana describes this as a personal mission to position Cepsa Química as a leading provider of Next products crafted from renewable energy or sourced from circular materials. The company’s first Next product launched in 2017 and 2021 consisted of a biodegradable detergent raw material of renewable origin. Next LAB, introduced this year with low-carbon inputs, will be followed by products built from circular origin raw materials next year.
There have been preliminary efforts to introduce plant-residue–based raw materials for detergent production. While still on a smaller scale, collaborations with major firms are in progress. Detergent remains a dominant product category globally, spanning Europe and Latin America. The cost premium for these greener inputs is acknowledged, but the aim is to scale up and drive affordability as production scales increase.
industrial slimming
In the first half of the year, the chemical segment reported a profit of 123 million, down from 216 million in the same period last year. Industry-wide effects of the late-2022 downturn have moderated, and Solana remains optimistic about a recovery in 2024. He notes that the trajectory will depend on geopolitical developments and financial conditions, but believes the firm can maintain a solid position even in challenging times.