Cepsa and Bio-Oils' JV to promote the production of biofuels

The new plant will secure the majority of the feedstock supply from organic waste such as agricultural residue or used cooking oils through a global, long-term agreement with Apical, Bio-Oils' parent company, enabling it to address one of the key challenges facing the industry: access to feedstock. 2G biofuels promote the circular economy by using waste for their production that would otherwise end up in landfills.

Cepsa will contribute its technical expertise and experience in the development of large industrial projects and fuel production as well as its knowledge of the European market and the decarbonisation goals of its customers in the transport sector. Apical and Bio-Oils will ensure the supply of raw materials and contribute their own expertise in biofuels production.

The new plant, which will create approximately 2000 direct and indirect jobs during its construction and operation phase, will include two pretreatment units and the capacity for flexible annual production of 500 000 t of sustainable aviation fuel (SAF) and renewable diesel for land, sea and air transportation. The plant is scheduled to begin operating in 1H26.

The facility will be constructed with the latest technology specifically created for the production of this type of biofuels. Designed as a digital native plant, the new operation incorporates state-of-the-art technology including the latest industry advances in artificial intelligence (AI), internet of things (IoT) and data analysis to maximise process efficiency, and ensure the highest standards of safety and environmental protection.

The sustainable fuels developed in this new plant will save 1.5 million tpy of CO₂ emissions, equivalent to 30% of emissions in the province of Huelva. The use of biofuels can reduce CO₂ emissions by up to 90% compared to traditional fuels, making biofuels a key element in enabling a fair energy transition to decarbonise transportation, particularly in sectors where electrification is complex, such as heavy road, maritime, and air transportation. Cepsa’s chemical business will also benefit from this project having access to organic waste feedstocks for the production of their sustainable product portfolio.

The project was presented at La Rábida Energy Park with the participation of Juan Manuel Moreno Bonilla, President of the Regional Government of Andalusia; Maarten Wetselaar, Cepsa CEO; Óscar García, Bio-Oils CEO; and Dato’ Yeo How, President, Apical Group.

During his speech, Juan Manuel Moreno Bonilla highlighted: “Cepsa has been investing in Huelva and Andalusia for almost 60 years and has been an active part and main player in the progress experienced in our land. Cepsa has made an outstanding contribution to our progress and to the creation of employment, with almost 8000 direct and indirect jobs. Big bets like Cepsa's confirm that we are on the right track."

Óscar García said: “Cepsa has been Bio-Oils’ largest customer for many years. We share many operational advantages such as interconnection and operating adjacent facilities, and using the Reina Sofia berth for the charge/discharge of our products through Cepsa vessels. This new JV is a natural evolution of our existing relationship.”

Dato’ Yeo How added: “We believe wider use of SAF and renewable diesel provides significant benefits on a global scale, both in terms of mitigating the effects of climate change and promoting sustainable economic growth. Apical’s ample supply of high-quality second-generation feedstock is key to ensuring the new JV delivers on our shared vision to reduce GHG emissions in land, sea and air transport.”

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/17042023/cepsa-and-bio-oils-jv-to-promote-the-production-of-biofuels/