Cepsa, PreZero Spain collaborate for waste-to-biomethane & other biofuels

Cepsa and PreZero Spain have signed a strategic partnership that will enable both companies to advance in their decarbonization objectives. Under the agreement, PreZero Spain will supply biomethane from some of its projects to Cepsa, and the two companies will jointly develop biomethane plants.

Furthermore, Cepsa and PreZero Spain will work on the recovery of waste to produce second-generation biofuels and circular chemical products and to decarbonize the land fleet operated by PreZero in Spain and Portugal.

Carlos Barrasa, EVP, Cepsa, said, “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.”

Gonzalo Cañete, CEO of PreZero, added, “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 decarbonization objectives.”

Both companies are already making progress in the development of a biomethane plant in the province of Huelva. This new facility with an annual capacity of up to 100 GWh, which would cover the heating needs of around 20,000 homes, will be one of the largest installations of this renewable energy in Spain and will be used to produce green hydrogen and renewable fuels.

In addition, PreZero—which in 2023 produced 75% of all biomethane generated in Spain—will provide Cepsa with this renewable gas, on a preferential basis, in the projects that PreZero and Cepsa identify as strategic for both parties, allowing the energy company and its customers to decarbonize their industrial processes. During its lifecycle, this renewable gas can reduce CO2 emissions by up to 90% compared to natural gas and has the same characteristics as the latter, which means that it can be stored or fed into the current gas transport network without the need to develop new infrastructure.

The agreement will also allow Cepsa to obtain biogenic CO2 from PreZero Spain’s biomethane plants to produce synthetic fuels.

As part of this partnership, PreZero will recover other organic waste or used cooking oils for Cepsa to use in producing second-generation biofuels, which will facilitate the immediate decarbonization of sectors that are difficult to electrify, such as heavy road, maritime or air transport.

In addition, Cepsa will research solutions designed to decarbonize PreZero’s private fleet by supplying biofuels or electric recharging, among other initiatives.