Cepsa and PreZero enter alternative energies partnership

July 4, 2024, by Aida Čučuk

Cepsa and PreZero Spain have signed a partnership agreement under which the latter will supply biomethane from some of its projects to Cepsa, and the two companies will jointly develop biomethane plants. Furthermore, the parties 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.

Both companies are said to be already making progress in the development of a biomethane plant in the Spanish province of Huelva. According to Cepsa, 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. The plant will be built at Cepsa’s facilities in Palos de la Frontera, where the company has an energy park. Here, Cepsa also plans to develop a green hydrogen plant with a 1 GW capacity, as part of the Andalusian Green Hydrogen Valley.

As for the supply part of the deal, PreZero will provide Cepsa with biomethane, on a preferential basis, in the projects that the companies identify as strategic for both parties. Furthermore, the agreement will allow Cepsa to obtain biogenic CO2 from PreZero Spain’s biomethane plants to produce synthetic fuels.

PreZero will also recover other organic waste or used cooking oils for Cepsa to use in producing second-generation biofuels, which will facilitate the decarbonization of sectors that are difficult to electrify, such as heavy road, maritime or air transport. In addition, PreZero will treat plastic waste, including from single-use plastics, to supply Cepsa with the raw material which the company can then use to develop circular chemical products. Cepsa said that both companies will analyze the joint development of pyrolysis plants to process this type of non-recyclable plastic waste.

The partnership also includes the analysis of solutions designed to decarbonize PreZero Spain’s private land fleet of more than 750 vehicles.

Carlos Barrasa, Executive Vice President of Commercial & Clean Energies at Cepsa, commented: “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 decarbonized economy.”

Gonzalo Cañete, CEO of PreZero in Spain and Portugal, stated: “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. 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.”

To note, as part of its 2030 strategy “Positive Motion,” Cepsa is developing an ecosystem to accelerate the decarbonization of its business and that of its customers through the production of green molecules such as renewable hydrogen and its derivatives, as well as 2G biofuels including biomethane, PBS or 100% renewable diesel.

Meanwhile, PreZero Spain aims to be carbon neutral by 2050, reducing greenhouse gas (GHG) emissions in all its operations. To this end, the company has defined a sustainability strategy based on using recycled raw materials, producing green energy, optimizing waste collection routes and loads, as well as implementing energy efficiency measures, among other actions.