Cepsa Partners with PreZero Spain to Develop Biomethane Plants for Green Energy Transition
Key Ideas
- Cepsa, in collaboration with PreZero Spain, is investing EUR8bn to develop biomethane plants using organic waste for low-carbon fuels like green hydrogen and biofuels.
- The partnership aims to produce biomethane from organic waste, with the first plant having a capacity of up to 100 GWh to support Cepsa's green hydrogen and biofuels facilities in Huelva, Spain.
- Biofuels play a crucial role in decarbonising transportation, especially in sectors like aviation, by utilizing second-generation biofuels made from non-food organic materials.
- The alliance between Cepsa and PreZero will enhance access to circular raw materials for producing alternative energies, supporting the energy transition towards sustainable practices.
Spanish oil and gas company Cepsa, backed by Abu Dhabi's Mubadala and Carlyle Group, has partnered with PreZero Spain, a division of Lidl's owner Schwarz Group, to develop biomethane plants using organic waste. This initiative is part of Cepsa's strategy to invest EUR8bn by 2030 to focus on low-carbon fuels, including green hydrogen and biofuels. The companies will collaborate to build plants producing biomethane from organic waste, with the first plant in Huelva, Spain, set to have a capacity of up to 100 GWh. This plant will support Cepsa's planned facilities for green hydrogen and biofuels. Additionally, PreZero will supply biomethane to Cepsa and the companies will work together on initiatives to recover organic waste for biofuel production. Carlos Barrasa, Cepsa's executive VP of commercial & clean energies, highlighted that the partnership will enable the production of alternative energies like green hydrogen and second-generation biofuels, supporting the energy transition. Biofuels are crucial for decarbonizing hard-to-electrify sectors like aviation, with second-generation biofuels offering a sustainable solution by utilizing non-food organic materials. The Cepsa-PreZero alliance is expected to enhance access to circular raw materials for alternative energy production, contributing to a more sustainable and environmentally friendly future.