Cepsa and PreZero to collaborate on biomethane and 2G biofuels production

Spanish energy firm Cepsa and waste management company PreZero Spain have inked a deal to jointly develop biomethane plants in Spain.

PHOTO: Cepsa’s executive vice president Carlos Barrasa (left) and PreZero’s chief executive Gonzalo Cañete at the deal signing. Cepsa

Under the agreement, the companies will jointly develop plants to produce biomethane from organic waste. The first plant, with a capacity of up to 100 gigawatt hours (GWh), will be built at Cepsa's Energy Park in Palos de la Frontera, Huelva.

The duo has not specified the number of production facilities they plan to develop under this partnership.

As part of the deal, PreZero Spain will also supply biomethane from its projects to Cepsa. Additionally, both companies will collaborate to recover organic waste and convert it into raw materials for producing second generation (2G) biofuels and biomethane.

PreZero will recover organic waste and used cooking oils for Cepsa to use in making 2G biofuels, aiding the decarbonisation of sectors that are difficult to electrify, including maritime.

“The biofuels produced from recovered waste can be used for hard-to-electrify transport such as shipping,” a Cepsa representative told ENGINE.

Cepsa is also constructing a 2G biofuels plant to produce renewable diesel and sustainable aviation fuel (SAF) in Palos de la Frontera, Huelva. Additionally, a green hydrogen plant with a 1-gigawatt (GW) capacity is planned at the Energy Park.

By Tuhin Roy

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