Cepsa and Bio-Oils begin construction of large biofuels plant

The facility will double Cepsa's and Bio-Oils' current second-generation biofuels production capacity to 1 million tons.

Cepsa and Bio-Oils are beginning construction of the largest second-generation biofuels plant in southern Europe. This facility will be able to produce 500,000 tons of sustainable aviation fuel and renewable diesel annually, doubling its current production capacity. The new 2G biofuels plant, along with the existing facilities operated by Cepsa and Bio-Oils in Huelva, Spain, will form the second largest renewable fuel complex in Europe, with a total production capacity of 1 million tons per annum.

The new facility, whose start-up is planned for 2026, will be built in Palos de la Frontera (Huelva), next to La Rábida Energy Park. Its development involves a 1.2-billion-euro investment and the creation of 2,000 direct and indirect jobs during the construction and operation phases.

“This strategic project for Spain and Andalusia will make us a European benchmark in the field of green molecules and facilitate the immediate decarbonization of sectors that cannot run on electrons, like aviation. This is the start of a new chapter for Cepsa and this region that will generate quality employment and a new era of industrialization,” said Maarten Wetselaar, CEO of Cepsa.

In addition to SAF and renewable diesel (HVO), the plant will also produce biogas, a key raw material for the production of green hydrogen.

The construction of this facility will involve the installation of 590 kilometers of pipelines (more than the distance separating the cities of Huelva and Madrid) and 1,400 kilometers of cable (almost the distance between Huelva and Paris).