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Spanish multinational oil and gas company Cepsa has formed a joint venture with Bio-Oils to produce biofuels at a new US$1.07bn (€1bn) plant in Huelva, Spain.

The new second generation (2G) biofuel plant at Cepsa’s La Rábida Energy Park facility in Palos de la Frontera would have two pre-treatment units and the capacity for flexible production of 500,000 tonnes/year of sustainable aviation fuel (SAF) and renewable diesel, Cepsa said on 14 April.

Due to become operational in the first half of 2026, Cepsa said the new plant would secure the majority of its feedstock (organic waste such as agricultural residues or used cooking oils) through a global, long-term agreement with Apical, Bio-Oils’ parent company.

As part of the joint venture, Cepsa would contribute its technical expertise and experience in the development of large-scale industrial projects and fuel production as well as its knowledge of the European market.

As well as supplying raw materials, Apical and Bio-Oils would contribute their knowledge in biofuels production.

“Cepsa has been Bio-Oils’ largest customer for many years. We share many operational advantages such as interconnection and operating adjacent facilities and using the Reina Sofia berth for the charge/discharge of our products through Cepsa vessels,” Bio-Oils CEO Óscar García said.

Cepsa said it aimed to produce 2.5M tonnes/year of biofuels – including 800,000 tonnes of SAF – by 2030 as part of its plan to achieve net zero emissions by 2050.