Cepsa and Bio-Oils to Build Largest 2G Biofuels Plant in Huelva

Project Overview

Cepsa and Bio-Oils have formed a joint venture to construct the largest 2G biofuels plant in southern Europe, located at Cepsa’s La Rábida Energy Park in Palos de la Frontera, Huelva. The project represents an investment of up to 1 billion euros, one of the largest private investments in Andalusia's history.

Production Capacity and Feedstock

The plant will have an annual production capacity of 500,000 tons of sustainable aviation fuel (SAF) and renewable diesel. The majority of the feedstock will be sourced from organic waste, such as agricultural residue and used cooking oils, through a long-term agreement with Apical, Bio-Oils' parent company. This approach supports the circular economy by utilizing waste that would otherwise end up in landfills.

Job Creation and Technology

Approximately 2,000 direct and indirect jobs will be created during the construction and operation phases. The facility will incorporate state-of-the-art technology, including artificial intelligence, IoT, and data analysis, to maximize efficiency and ensure high standards of safety and environmental protection. The plant is scheduled to begin operations in the first half of 2026.

Environmental Impact

The sustainable fuels produced at the new plant are expected to save 1.5 million tons of CO2 emissions per year, equivalent to 30% of emissions in the province of Huelva. Biofuels can reduce CO2 emissions by up to 90% compared to traditional fuels, making them crucial for decarbonizing transportation sectors where electrification is challenging, such as heavy road, maritime, and air transport.

Strategic Goals

This project aligns with Cepsa's goal to lead the production of 2G biofuels in Spain and Portugal, aiming for an annual production capacity of 2.5 million tons by 2030. It also supports the European Green Deal and the European Commission's Fit for 55 package, which seeks to increase the use of aviation biofuels in the EU.