Spain's Cepsa, Apical begin work on Southern Europe's biggest biofuels plant
(Reuters) - Spain's Cepsa and Apical Group's Bio-Oils unit began building what will be Southern Europe's largest biofuels plant able to produce 500,000 metric tons of renewable diesel and SAF per year, the companies said.
The oil and gas company, which is seeking to shift to lower carbon energy, and vegetable oil processor Apical said they will invest 1.2 billion euros ($1.30 billion) in the plant that will start operating in 2026.
Initially, they planned to spend 1 billion euros. A Cepsa spokesperson said the extra money would fund infrastructure work at the nearby port of Huelva.
In all Cepsa, owned by Abu Dhabi fund Mubadala [RIC:RIC:MUDEV.UL] and the Carlyle Group CG.O, is investing up to 8 billion euros to shift to low carbon energy.
The construction of the plant marks "the first major milestone" of the company's strategy, Chief Executive Maarten Wetselaar said.
Located in the southern Spanish region of Andalusia, the plant will use organic waste, such as used cooking oils, and contribute to the oil company's goal of producing 2.5 million tons of biofuels, of which 800,000 tons will be SAF, by the end of the decade.
Biofuels are seen as essential in decarbonising transportation, such as aviation, which is hard to electrify.
Comments