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    Reference: 20230610
    Release date: 1 July 2024

    Promoter – Financial Intermediary




    The project concerns the construction and operation of a 500 ktpa second generation biofuels production facility in Huelva, Andalucia (Spain). The facility will be based on Hydrogenated Vegetable Oil (HVO) technology, it will process a wide variety of fatty residues, such as used cooking oils, animal fats and other industry residues, to produce biodiesel for road transport and SAF (Sustainable Aviation Fuel) for aviation.

    Additionality and Impact

    The Project is in line with the InvestEU objective of the development of the energy sector and sustainable bioeconomy. The Project is also well aligned to the EU decarbonization policies and contributes to the Green Deal, the "FIT for 55" package, the ReFuelEU Aviation initiative, the REDII (EU/2018/2001)/REDIII (EU/2023/2413) Directive and the RePowerEU objectives by enhancing the EU production capacity of clean alternatives to fossil fuels, i.e. Hydrogenated Vegetable Oil (HVO) Biodiesel and Sustainable Aviation Fuel (SAF) made of residues.


    The low-carbon fuels projects reduce carbon and air pollution externalities from road transport and aviation. The upcycling of waste like Used Cooking Oil (UCO), Palm Oil Mill Effluent (POME) or animal fats reduce negative impacts from their alternative disposal. Low-carbon technologies contribute towards increasing security of energy supply, considered as a public good. The investment is therefore strongly aligned to several EIB Public Policy Goals.


    The Project is implemented by an experienced Promoter that has solid supply and offtake agreements in place. The Project allows CEPSA to increase the share of low carbon fuels it produces, supporting the Company's shift towards sustainability. The plant is technically fully flexible to produce any outcomes from HVO for the road sector to SAF for the aviation sector, allowing it to flexibly react to changing regulatory and market environments. The produced advanced biofuels will deliver significant Greenhouse Gas (GHG) savings. This will result in economic returns that are significantly higher than the financial returns.


    The Bank's financial contribution is considered excellent in terms of tenor, availability and financial benefit. The EIB loan is expected to confirm the soundness of the Borrower's decarbonisation strategy. The Bank's role is therefore to crowd in a greater lever of private investment. The Project would not have been carried out to the same extent by the EIB without the InvestEU support.


    The aim is to establish a large scale production of sustainable advanced biofuels that will contribute to the decarbonisation of transport in the EU, including in the “hard-to-abate” (HTA) sectors such as aviation. As such, the project is fully in line with several key EU policies, notably the Green Deal, REPowerEU and ReFuelEU Aviation and will therefore contribute towards the Fit-for-55 package objectives. The advanced biofuels will be produced according to the Renewable Energy Directive (RED II) requirements and contribute to achieve REDII targets such as increase the share of renewable energy in transport. The project will also contribute to reduce the EU dependence on fossil fuels imports and foster energy security. Considering the above, the investment is considered to be highly aligned with EIB's public policy goals.


    Proposed EIB finance (Approximate amount)

    EUR 415 million

    Total cost (Approximate amount)

    EUR 948 million

    Environmental aspects

    Compliance with the applicable EU environmental legislation such as the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending the EIA Directive 2011/92/EU), as well as well the Industrial Emissions Directive (IED) (2010/75/EU) and other applicable environmental laws will be assessed during the appraisal.


    The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation (Directive 2014/24/EU or 2004/18/EC, where applicable), then the Bank would require the promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU or 2004/18/EC, where applicable), as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.


    Signed - 27/06/2024

    Under appraisal
    20 June 2024
    27 June 2024


    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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