prezero and cepsa scheme

Cepsa and PreZero Spain seal a great alliance to valorize waste in the production of biomethane and other biofuels

Cepsa and PreZero Spain have reached a strategic alliance that will allow both companies to advance their decarbonization objectives. The two companies will promote the biomethane market through collaboration in the supply of this renewable gas by PreZero Spain in some of its energy projects, in addition to the joint development of biomethane plants. Likewise, Cepsa and PreZero Spain will work on the recovery of waste for the production of second-generation biofuels and circular chemical products and on the decarbonization of the land fleet that PreZero operates in Spain and Portugal.

The agreement contemplates the joint development of biomethane plants generated from organic waste. The first, with a planned capacity of up to 100 GWh, will be located in Huelva and will be used to produce renewable energy for the Andalusian Green Hydrogen Valley.

For Carlos Barrasa, director of Commercial & Clean Energies at Cepsa: “This alliance with PreZero will allow us to expand access to circular raw materials for the production of different energies that facilitate the energy transition, such as green hydrogen or second generation biofuels. Together we will promote a sustainable alternative to the treatment of urban and industrial waste, valorizing it for the production of renewable energy, thus promoting a circular and decarbonized economy.”

For Gonzalo Cañete, CEO of PreZero in Spain and Portugal: “This agreement arises from the enormous potential that exists in Spain for the development of biomethane as natural gas of renewable origin, as well as the need to standardize ourselves with other EU countries in compliance with the circular economy and decarbonization objectives. To achieve this, along with public-private collaboration, we must enhance cooperation between private companies, as demonstrated by this very promising alliance that we announced today.”

Both companies are already advancing in the development of a biomethane plant in the province of Huelva. This new facility – which will have an annual capacity of up to 100 GWh, which would supply the heating consumption of nearly 20.000 homes – will be one of the largest installations of this renewable energy in our country and will be used for the production of green hydrogen and renewable fuels. This plant will be built at Cepsa's facilities in Palos de la Frontera, where the company has an energy park and a chemical plant. There, the energy company is also building the largest 2G biofuels plant in southern Europe - which will produce sustainable aviation fuel (SAF) and renewable diesel - and plans to develop a green hydrogen plant with a capacity of 1GW, within the Andalusian Valley. of Green Hydrogen.

In addition, PreZero—which in 2023 produced 75% of all the biomethane generated in Spain—will provide Cepsa with this renewable gas, preferably, in those projects that PreZero and Cepsa identify as strategic for both parties, which will allow the energy company and its clients to decarbonize their industrial processes. During its life cycle, this renewable gas can reduce up to 90% of CO2 emissions compared to natural gas and has the same characteristics as natural gas, which allows it to be stored or injected into the current gas transportation network, without the need to develop new infrastructure. The agreement will also allow Cepsa to acquire biogenic CO2, from the PreZero Spain biomethane plants, for the production of synthetic fuels.

Within the framework of this alliance, PreZero will valorize other organic waste or used cooking oils so that Cepsa can use them in the production of second-generation biofuels, which will facilitate the immediate decarbonization of sectors that are difficult to electrify, such as heavy road, maritime or aerial. Likewise, PreZero will treat plastic waste—such as single-use waste—to supply Cepsa with the raw materials with which the company can develop circular chemical products. Both companies will analyze the joint development of pyrolysis plants to process this type of non-recyclable plastic waste.

At the same time, Cepsa will facilitate the analysis of solutions for the decarbonization of PreZero's private fleet through the supply of biofuels or electric charging for its fleet, among other initiatives.

Commitment to decarbonization and circularity

The production of renewable fuels is aligned with the REPowerEU initiative to reduce dependence on fossil fuels and CO2 emissions, in addition to contributing to achieving several of the Sustainable Development Goals of the 2030 Agenda: SDG 7 (Affordable and clean energy ), SDG 8 (Decent work and economic growth), SDG 12 (Responsible production and consumption) and SDG 13 (Climate action).

Within the framework of its 2030 strategy, Positive Motion, Cepsa is promoting the development of an ecosystem focused on accelerating its decarbonization and that of its clients, through the production of green molecules, such as renewable hydrogen and its derivatives, 2G biofuels, such as biomethane, SAF or 100% renewable diesel, with the aim of becoming a benchmark for the energy transition.

For its part, PreZero Spain, which currently generates more energy than it consumes, aspires to be carbon neutral by 2050, reducing greenhouse emissions in all its operations. To this end, it has defined a sustainability strategy based on the use of recycled raw materials, the production of green energy, the optimization of loading and waste collection routes and the implementation of energy efficiency measures, among other actions.

From the 4th Renewable Gas Show and the 17th International Bioenergy Congress we want to congratulate CEPSA, which is our Global Sponsor, and PreZero, which is a Premium Sponsor of our events, for this important alliance.