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Cepsa + PreZero Spain sign biomethane agreement: Mubadala-backed Spanish oil refiner Cepsa and Schwarz Group’s environmental unit PreZero Spain signed an agreement to produce biomethane from organic waste, according to a statement. The pair will recover waste and convert it into raw material to produce second generation biofuels (2G) — made from non-food organic materials as opposed to first generation ones made from sugar-starch or oilseed crops — and circular chemical products.
The details: The two are planning to develop biomethane plants, with the first set to have a 100 GWh capacity to power Cepsa’s planned green hydrogen and biofuels facilities in southern Spain’s port city of Huelva. PreZero will supply biomethane and biogenic CO2 to Cepsa, and will work with Cepsa to recover organic waste for biofuel production. The agreement also includes plans to decarbonize PreZero’s private 750 vehicle land fleet in Spain.
What they said: “This alliance with PreZero will allow us to expand access to circular raw materials to produce alternative energies that will facilitate the energy transition, such as green
hydrogen and second-generation biofuels,” executive vice president of commercial & clean energies at Cepsa Carlos Barrasa said in the statement.
The first plant will be a breakthrough for Spain: The Huelva plant is expected to be the largest biofuels facility installed in Spain. Cepsa is already building the largest 2G biofuels plant to produce sustainable aviation fuel and renewable diesel in southern Europe, and plans to develop a green hydrogen plant with a 1 GW capacity. Both will be located in the same complex in Huelva as part of the Andalusian Green Hydrogen Valley.
Cepsa’s been active in the green sector: The oil refiner recently divested its upstream operations in Peru to Canada’s PetroTal Corp in efforts to shift investments towards green energy. The company also signed agreements with Norwegian ammonia producer and shipper Yara Clean Ammonia and Dutch energy network operator Gasunie last year to facilitate transportation of green hydrogen to Germany and neighboring European countries. Cepsa plans to invest EUR 8 bn in low-carbon fuels up until 2030.
