Cepsa and PreZero Spain join forces to recover waste for biofuel production

In addition, Cepsa and PreZero Spain will work on the recovery of waste to produce second-generation biofuels and circular chemical products, as well as the decarbonisation of the land-based fleet operated by PreZero in Spain and Portugal.

Carlos Barrasa, Vice President of Commercial and Clean Energy at Cepsa, said: “This alliance with PreZero will allow us to expand access to circular raw materials to produce alternative energy sources that facilitate the energy transition, such as green hydrogen and second-generation biofuels.”

Gonzalo Cañete, General Manager of PreZero in Spain and Portugal, added: “This agreement stems from Spain’s huge potential to develop biomethane as a renewable natural gas, as well as the need to align with other EU countries in pursuing circular economy and decarbonisation goals.”

The two companies are already making progress on the development of a biomethane plant in the province of Huelva. This new plant, with an annual capacity of up to 100 GWh, which would cover the heating needs of around 20,000 homes, will be one of the largest installations of this renewable energy in Spain and will be used to produce green hydrogen and renewable fuels. The plant will be built at the Cepsa plant in Palos de la Frontera, where the company has an Energy Park and is already building the largest 2G biofuels plant in southern Europe to produce sustainable aviation fuel (SAF) and renewable diesel.

It also plans to build a 1 GW green hydrogen plant as part of the Andalusian Green Hydrogen Valley in the Energy Park, where there is also a chemical plant.

In addition, PreZero, which accounted for 75% of all biomethane production in Spain in 2023, will supply Cepsa with this renewable gas on a preferential basis through projects that PreZero and Cepsa consider strategic for both parties, enabling the energy company and its customers to decarbonise their industrial processes.

Over its life cycle, this renewable gas can reduce CO2 emissions by up to 90% compared to natural gas and has the same properties as the latter, meaning it can be stored or injected into the current gas transmission network without having to develop new infrastructure. The agreement will also allow Cepsa to obtain biogenic CO2 from PreZero Spain’s biomethane plants to produce synthetic fuels.

As part of the partnership, PreZero will recover other organic waste or used cooking oils, which Cepsa will use to produce second-generation biofuels. This will facilitate the immediate decarbonization of hard-to-electrify sectors such as heavy road, marine and aviation.

PreZero will also process plastic waste, including single-use plastic, to provide Cepsa with raw material that the energy company can then use to develop circular chemical products. The two companies will explore joint development of pyrolysis plants to process this type of non-recyclable plastic waste.

In addition, Cepsa will explore solutions to decarbonize PreZero’s private fleet, including by providing biofuels or charging electric vehicles.