EIB lends EUR 285m to Cepsa for Spanish biofuels project

Spanish oil and gas company Cepsa has signed a deal for a EUR-285-million (USD 305m) loan from the European Investment Bank (EIB) to bankroll the construction of an advanced biofuels plant in Andalusia, it was announced today.

The planned facility will be built next to the La Rabida Energy Park in Palos de la Frontera to produce sustainable aviation fuel (SAF) and renewable diesel (HVO) from organic or agricultural waste. Cepsa will realise the project in partnership with Bio-Oils and with the backing of the InvestEU programme.

Upon completion, the plant will have the capacity to process up to 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels a year. Its output will serve the aviation and maritime transport sectors, as well as heavy-duty road transport.

EIB noted that this is the third financing operation it undertakes with Cepsa in the last two years to help the company accelerate its decarbonisation strategy. At the end of 2023, Cepsa got a EUR-80-million EIB loan to construct two solar farms in Andalusia.

(EUR 1.0 = USD 1.071)

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