Summary sheet
The project consists of three major schemes, concerning the construction and operation of 1) a mild hydrocracker (25000 b/d capacity) and ancillary units at the Algeciras refinery (San Roque); 2) a Combined Heat and Power (CHP) plant at the same refinery (capacity: 40 MWe, 80 MWth), and 3) a Combined Cycle Gas Turbine (CCGT) CHP plant at La Rabida refinery (Huelva; capacity: 80 MWe, 140 MWth).
The project will increase the production of cleaner transport fuels at the expense of more polluting heavy oil products, in line with European policy and directives to improve fuel specifications. It will also enhance reliability of electricity and steam supply to the existing refineries and neighbouring petrochemical complex, using a technology with the highest energy-conversion efficiency currently available for thermal power plants and replacing low efficiency conventional boilers presently in use.
All three project schemes fall under Annex II of the EIA directive 85/337/EEC and its amendments. EIAs have been conducted by the promoter for the refining upgrade in Algeciras and the CHP plant in La Rabida. Both EIAs have been approved by the environmental authorities. The cogeneration project in the Algeciras refinery has been exempted from EIA procedures since it is considered a non-substantial modification.
The project is a private sector operation. Procurement follows the promoter’s corporate in-house purchasing procedures to ensure an appropriate level of competition among qualified contractors. During the appraisal, the Bank will verify the promoter’s procurement procedures to ensure that the project benefits from market-based competition between potential subcontractors.