CEPSA and BIO OILS Energy S.L. have reached an agreement for the latter company to build a biodiesel production facility on property belonging to  CEPSA’s “La Rábida” Refinery in Palos de La Frontera (Huelva). The investment is projected to total €40 million and will lead to the creation of 35 direct jobs. With a capacity to produce 200,000 tons per year of biodiesel, fully earmarked for the “La Rábida” Refinery, this new plant will diversify supplies of this product to CEPSA’s refineries. The manufacturing process involves using vegetable oils and the resulting biodiesel is then blended at a 5% level with regular automotive diesel.

The plant is due to come on-stream in late 2007 and will be able to meet the Refinery’s present and future requirements, once the planned expansion and upgrading process, which will raise middle distillate production capacity by 2.7 million tons per year, is completed.

In December 2005, CEPSA announced the construction of the first biodiesel plant at its “Gibraltar” Refinery in San Roque (Cádiz). Both projects combined will add up to a total production of 400,000 tons per year. The development of these activities responds to  CEPSA’s interest in fulfilling the recommendations on promoting the use of vegetable-based biofuels as a cleaner alternative energy source.

As they involve the production of diesel, which Spain has a shortage of, these two new plants commissioned by CEPSA will contribute towards reducing the country’s reliance on foreign energy sources and also help meet the targets of the Renewable Energies Plan approved by the Spanish Government.

With the start-up of this second biodiesel production facility, CEPSA seeks to play an active role in supporting Spain’s commitments under the European Directive established in application of the Kyoto Protocol and foster the development of environmentally-friendly projects and schemes that improve the welfare and conditions of the communities where the Company operates.


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