Cepsa and PreZero Spain Join Forces to Transform Waste into Biomethane and Biofuels

Cepsa and PreZero Spain have entered a strategic partnership aimed at advancing their decarbonization goals. Under this agreement, PreZero Spain will supply biomethane from its projects to Cepsa, and together, they will develop biomethane plants. Additionally, they will collaborate on waste recovery to produce second-generation biofuels and circular chemical products, as well as to decarbonize PreZero's land fleet in Spain and Portugal.

Carlos Barrasa, Executive Vice President of Commercial & Clean Energies at Cepsa, stated, "Our partnership with PreZero enables us to expand our use of circular raw materials to produce alternative energies that support the energy transition, including green hydrogen and second-generation biofuels. Together, we will create a sustainable solution for processing urban and industrial waste, converting it into renewable energy and advancing a circular, decarbonized economy."

Gonzalo Cañete, CEO of PreZero in Spain and Portugal, remarked, "This agreement highlights Spain's significant potential for developing biomethane as a renewable natural gas and the necessity to align with other EU nations in achieving circular economy and decarbonization goals. To accomplish this, we must foster cooperation between private companies and public-private partnerships, as exemplified by this promising collaboration we are announcing today."

Both companies are advancing in the development of a biomethane plant in Huelva province. This new facility, with an annual capacity of up to 100 GWh, will meet the heating needs of approximately 20,000 homes. It will be one of the largest renewable energy installations in Spain, used for producing green hydrogen and renewable fuels. The plant will be built at Cepsa's facilities in Palos de la Frontera, home to an Energy Park and the largest 2G biofuels plant in southern Europe, which produces sustainable aviation fuel (SAF) and renewable diesel. Additionally, Cepsa plans to develop a 1 GW green hydrogen plant as part of the Andalusian Green Hydrogen Valley at this site, which also hosts a chemical plant.

Additionally, PreZero—which accounted for 75% of all biomethane produced in Spain in 2023—will supply this renewable gas to Cepsa on a preferential basis for projects identified as strategic by both parties. This collaboration will help Cepsa and its customers decarbonize their industrial processes. This renewable gas can reduce CO2 emissions by up to 90% over its lifecycle compared to natural gas and shares the same characteristics, allowing it to be stored or fed into the existing gas transport network without the need for new infrastructure. The agreement also enables Cepsa to acquire biogenic CO2 from PreZero Spain's biomethane plants to produce synthetic fuels.

As part of this partnership, PreZero will collect organic waste and used cooking oils for Cepsa to produce second-generation biofuels, aiding the immediate decarbonization of hard-to-electrify sectors like heavy road, maritime, and air transport. PreZero will also process plastic waste, including single-use plastics, to provide Cepsa with raw materials for developing circular chemical products. Additionally, both companies will explore the joint development of pyrolysis plants to process non-recyclable plastic waste.

Additionally, Cepsa will explore solutions to decarbonize PreZero's private fleet by providing biofuels, electric recharging options, and other initiatives.