| Project Detail |
The project concerns the construction and operation of a 500 ktpa second generation biofuels production facility in Huelva, Andalucia (Spain). The facility will be based on Hydrogenated Vegetable Oil (HVO) technology, it will process a wide variety of fatty residues, such as used cooking oils, animal fats and other industry residues, to produce biodiesel for road transport and SAF (Sustainable Aviation Fuel) for aviation.
Additionality and Impact
The Project is in line with the InvestEU objective of the development of the energy sector and sustainable bioeconomy. The Project is also well aligned to the EU decarbonization policies and contributes to the Green Deal, the "FIT for 55" package, the ReFuelEU Aviation initiative, the REDII (EU/2018/2001)/REDIII (EU/2023/2413) Directive and the RePowerEU objectives by enhancing the EU production capacity of clean alternatives to fossil fuels, i.e. Hydrogenated Vegetable Oil (HVO) Biodiesel and Sustainable Aviation Fuel (SAF) made of residues.
The low-carbon fuels projects reduce carbon and air pollution externalities from road transport and aviation. The upcycling of waste like Used Cooking Oil (UCO), Palm Oil Mill Effluent (POME) or animal fats reduce negative impacts from their alternative disposal. Low-carbon technologies contribute towards increasing security of energy supply, considered as a public good. The investment is therefore strongly aligned to several EIB Public Policy Goals.
The Project is implemented by an experienced Promoter that has solid supply and offtake agreements in place. The Project allows CEPSA to increase the share of low carbon fuels it produces, supporting the Companys shift towards sustainability. The plant is technically fully flexible to produce any outcomes from HVO for the road sector to SAF for the aviation sector, allowing it to flexibly react to changing regulatory and market environments. The produced advanced biofuels will deliver significant Greenhouse Gas (GHG) savings. This will result in economic returns that are significantly higher than the financial returns.
The Banks financial contribution is considered excellent in terms of tenor, availability and financial benefit. The EIB loan is expected to confirm the soundness of the Borrowers decarbonisation strategy. The Banks role is therefore to crowd in a greater lever of private investment. The Project would not have been carried out to the same extent by the EIB without the InvestEU support.
Objectives
The aim is to establish a large scale production of sustainable advanced biofuels that will contribute to the decarbonisation of transport in the EU, including in the “hard-to-abate” (HTA) sectors such as aviation. As such, the project is fully in line with several key EU policies, notably the Green Deal, REPowerEU and ReFuelEU Aviation and will therefore contribute towards the Fit-for-55 package objectives. The advanced biofuels will be produced according to the Renewable Energy Directive (RED II) requirements and contribute to achieve REDII targets such as increase the share of renewable energy in transport. The project will also contribute to reduce the EU dependence on fossil fuels imports and foster energy security. Considering the above, the investment is considered to be highly aligned with EIBs public policy goals.
Sector(s)
Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 415 million
Total cost (Approximate amount)
EUR 948 million |
