Cepsa and Bio-Oils Start Construction on Southern Europe's Largest 2G Biofuels Plant
- The new plant in Huelva will start production in 2026, doubling 2G biofuels capacity to 1 million tons annually.
- The project involves a 1.2-billion-euro investment and will create 2,000 direct and indirect jobs.
- The facility will produce sustainable aviation fuel (SAF) and renewable diesel (HVO) from agricultural waste and used cooking oils.
- The plant will emit 75% less CO2 than traditional biofuel plants and aims for net zero emissions in the medium term.
Project Overview
Cepsa and Bio-Oils have commenced construction on the largest second-generation (2G) biofuels plant in southern Europe, located in Huelva, Spain. The facility will double their current production capacity to 1 million tons annually and is set to begin operations in 2026.
Investment and Job Creation
The project involves a significant investment of 1.2 billion euros and is expected to generate 2,000 direct and indirect jobs during its construction and operational phases. The plant will be built next to La Rábida Energy Park in Palos de la Frontera.
Production and Environmental Impact
The new facility will produce 500,000 tons of sustainable aviation fuel (SAF) and renewable diesel (hydrogenated vegetable oil or HVO) each year. It will utilize agricultural waste and used cooking oils as feedstock, promoting a circular economy. The plant is designed to emit 75% less CO2 than traditional biofuel plants and aims to achieve net zero emissions in the medium term.
Technological Advancements
Equipped with the latest technology, the plant will use renewable hydrogen, 100% renewable electricity, and advanced heat recovery and energy efficiency systems. It will also incorporate artificial intelligence, the Internet of Things (IoT), and data analysis to optimize operations. The facility will not consume fresh water, relying instead on reclaimed water, and will have minimal water emissions due to a robust water treatment system.
Strategic Importance
This project is a key element of the Andalusian Green Hydrogen Valley ecosystem and will support the production of biogas and biogenic CO2, essential for green hydrogen and green methanol production. The plant will help reposition Spain and Andalusia in the international energy landscape, contributing significantly to the decarbonization of various transport sectors.