Repsol and the EIB sign €120 million loan agreement to finance first advanced biofuels plant in Spain
Published by Jessica Casey,
The European Investment Bank (EIB) is providing a €120 million loan to Repsol to support the construction and operation of the first advanced biofuels production plant at the company's facilities in Cartagena, Spain. The plant will produce second generation and advanced biofuels from different types of waste, primarily from the agri-food industry (such as used cooking oils) as part of the transition process towards a more circular economy. Construction work began in March 2022 and is scheduled for completion in 2H23.
While second-generation biofuels are derived from a broad range of biogenic residues including used cooking oils, certain animal fats and vegetable oils that cannot be used as food, or are derived from crops that do not compete with food, advanced biofuels are produced specifically from a subset of biogenic feedstocks listed in Part A of Annex IX of the REDII directive.
These biofuels are a sustainable solution for all segments of mobility, especially for those that have no other alternative to decarbonise their activity, such as maritime, long-distance, or aviation transport. They can reduce net carbon dioxide emissions by between 70 – 90% compared with the traditional fuels they replace. The EIB financing will also support research programmes for advanced biofuels technologies conducted at Repsol's Technology Lab in Madrid.
The production plant will be located within the premises of Repsol’s industrial complex in Cartagena, Region of Murcia – an EU cohesion region. The plant will process 300 000 tpy of lipidic residues for the production of up to 250 000 tpy of 2nd generation or/and advanced biofuels for the transport sector.
Speaking at the signature event in Madrid, EIB Vice President, Ricardo Mourinho Félix, said: “The EIB is committed to financing green transformation, the use of alternative energy sources and innovative research programs across Europe. The EIB loan contributes to Repsol’s strategy to transform its business model and to its decarbonisation strategy. We are pleased to be collaborating with companies such as Repsol which are taking steps towards decarbonising business activity and strengthening resilience to climate change.”
Repsol’s CFO, Antonio Lorenzo, added: “We are proud to be the first company in the sector to obtain this type of financing, which is a result of our commitment to execute ground-breaking projects in support of a rapid, effective and just energy transition.”
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Read the article online at: https://www.energyglobal.com/bioenergy/29122022/repsol-and-the-eib-sign-120-million-loan-agreement-to-finance-first-advanced-biofuels-plant-in-spain/
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