Cepsa and PreZero Spain Forge Alliance to Drive Biomethane and Circular Economy Initiatives

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Cepsa and PreZero Spain have announced a strategic partnership to accelerate Spain’s transition to renewable energy and promote circular economy practices. This collaboration’s core is the joint development of biomethane plants designed to convert organic waste into sustainable energy sources. The initial phase of this initiative will see the construction of a cutting-edge biomethane facility at Cepsa’s site in Huelva, with an expected annual capacity of up to 100 GWh.

“This alliance with PreZero will significantly expand our access to circular raw materials essential for producing alternative energies like green hydrogen and second-generation biofuels,” remarked Carlos Barrasa, Executive Vice President of Commercial & Clean Energies at Cepsa.

Gonzalo Cañete, CEO of PreZero in Spain and Portugal, underscored the strategic importance of the partnership, stating, “This agreement highlights Spain’s potential in biomethane development and demonstrates our commitment to achieving EU circular economy objectives.”

The biomethane plant in Huelva represents a milestone in Spain’s renewable energy landscape. It is capable of meeting the annual heating needs of approximately 20,000 homes. Beyond its immediate environmental benefits, the facility will support Cepsa’s sustainable aviation fuel and renewable diesel production initiatives. Located within Cepsa’s Energy Park in Palos de la Frontera, the plant complements ongoing efforts, including the construction of Southern Europe’s largest second-generation biofuels plant and plans for a 1 GW green hydrogen facility as part of the Andalusian Green Hydrogen Valley.

PreZero Spain’s involvement extends beyond biomethane production, encompassing the recovery of organic waste and used cooking oils for biofuel production. This collaboration aspect aims to facilitate the rapid decarbonization of challenging sectors such as heavy transport, essential for achieving sustainable mobility targets.

In addition to biofuel production, both companies are exploring the development of pyrolysis plants to process non-recyclable plastic waste, further reinforcing their commitment to circularity and sustainable resource management practices.

The partnership between Cepsa and PreZero Spain advances their respective decarbonization goals, aligns with the European Union’s REPowerEU initiative, and contributes to several Sustainable Development Goals outlined in the 2030 Agenda. This includes promoting affordable and clean energy (SDG 7), fostering responsible consumption and production patterns (SDG 12), and taking urgent action to combat climate change (SDG 13).

Environment + Energy Leader