Cepsa and PreZero Spain forge strategic partnership to drive decarbonisation

Cepsa and PreZero Spain entered a strategic partnership, with PreZero Spain supplying biomethane from its projects to Cepsa, while both companies jointly developing biomethane plants.

The partnership also focuses on recovering waste to produce second-generation biofuels, circular chemical products, and decarbonising PreZero's land fleet in Spain and Portugal.

Carlos Barrasa, Executive Vice President of Commercial & Clean Energies at Cepsa, expressed enthusiasm for the alliance: "This alliance with PreZero will allow us to expand access to circular raw materials to produce alternative energies that will facilitate the energy transition, such as green hydrogen and second-generation biofuels. Together we will develop a sustainable alternative for urban and industrial waste processing, recovering this waste for the production of renewable energy and thus promoting a circular and decarbonised economy."

Gonzalo Cañete, CEO of PreZero in Spain and Portugal, highlighted the potential of biomethane in Spain: "This agreement stems from the enormous potential in Spain for the development of biomethane as a renewably-sourced natural gas, as well as from the need to align ourselves with other EU countries in meeting circular economy and decarbonisation objectives. To this end, together with public-private collaboration, we must enhance cooperation between private companies, as demonstrated by this promising partnership that we are announcing today."

Both companies are already advancing the development of a biomethane plant in the province of Huelva. This facility, with an annual capacity of up to 100 GWh, is set to become one of the largest biomethane installations in Spain, capable of covering the heating needs of approximately 20,000 homes. Located at Cepsa's Energy Park in Palos de la Frontera, the plant will produce green hydrogen and renewable fuels.

Cepsa's Energy Park is also home to the largest 2G biofuels plant in southern Europe, aimed at producing sustainable aviation fuel (SAF) and renewable diesel. Additionally, a green hydrogen plant with a 1 GW capacity is being developed as part of the Andalusian Green Hydrogen Valley.

Preferential biomethane supply

In 2023, PreZero produced 75% of all biomethane in Spain. Under the new agreement, PreZero will provide this renewable gas to Cepsa on a preferential basis for strategic projects. This biomethane, which can reduce CO2 emissions by up to 90% compared to natural gas, can be integrated into the current gas transport network without the need for new infrastructure.

The agreement also enables Cepsa to obtain biogenic CO2 from PreZero's biomethane plants, which will be used to produce synthetic fuels.

Waste recovery and circular economy initiatives

PreZero will also supply Cepsa with organic waste and used cooking oils for the production of second-generation biofuels, aiding in the decarbonisation of sectors that are challenging to electrify, such as heavy road, maritime, and air transport. Additionally, PreZero will treat plastic waste, including single-use plastics, to provide Cepsa with raw materials for developing circular chemical products. The companies will explore the joint development of pyrolysis plants to process non-recyclable plastic waste.

Cepsa will further support PreZero's decarbonisation efforts by researching solutions to decarbonise PreZero's private fleet through the supply of biofuels and electric recharging options.

Commitment to decarbonisation and circularity

The production of renewable fuels aligns with the EU's REPowerEU initiative to reduce CO2 emissions and fossil fuel dependency, contributing to the Sustainable Development Goals of the 2030 Agenda: SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).

Cepsa's 2030 strategy, Positive Motion, aims to accelerate decarbonisation through the production of green molecules such as renewable hydrogen and 2G biofuels. PreZero Spain, committed to being carbon neutral by 2050, focuses on using recycled raw materials, producing green energy, optimising waste collection, and enhancing energy efficiency.

This partnership represents a significant step towards a sustainable and circular economy, leveraging the strengths of both companies to achieve ambitious decarbonisation targets.