Cepsa to build Spanish HVO plant with Apical

  • Market: Biofuels, Hydrogen
  • 14/04/23

Abu Dhabi-owned Cepsa said it plans to build a 500,000 t/yr second-generation hydrotreated vegetable oil (HVO) plant in southern Spain in partnership with Bio Oils, the Spanish subsidiary of Singapore-based palm oil producer Apical.

The plant will be located near the city of Huelva, where Cepsa operates a 220,000 b/d refinery and Bio Oils runs a 500,000 t/yr fatty acid methyl ester (Fame) biodiesel facility. Cepsa is Bio Oils' main customer and the pair share port installations and vessels in Huelva. Cepsa announced plans for an HVO facility at Huelva last month, putting the cost of the project at €1bn ($1.05bn). That investment will now be shared with Bio Oils.

Feedstock supply for the new plant has been secured through a long-term contract with Apical, which operates eight palm oil refineries, four biodiesel facilities and two palm kernel crushing facilities worldwide. Apical sold over 11mn t of palm oil products in 2021. Cepsa said it will source "organic waste such as agricultural residue" and used cooking oil (UCO) from Apical and this will make up most of the plant's feedstock.

Cepsa expects the HVO plant to come on stream in the first half of 2026, taking the firm towards its target to produce 2.5mn t/yr of biofuels by 2030, including 800,000 t/yr of sustainable aviation fuel (SAF). Cepsa's existing biofuels production capacity at Huelva and its other Spanish refinery — the 244,000 b/d Algeciras complex — had increased to 705,000 t/yr by the end of 2022 from 578,000 t/yr a year earlier.

Cepsa is focusing on biofuels and renewable hydrogen to achieve a target to reduce its scope 1 and 2 CO2 emissions by 55pc in 2030 and to become carbon neutral by 2050. The firm recently announced an acceleration of its renewable hydrogen capacity rollout in Huelva, where it now expects to have 400MW of electrolyser capacity on line in 2026, up from 200MW previously. This will be in time to supply the new HVO plant with renewable hydrogen for the hydrotreatment process.

Cepsa, which is controlled by Abu Dhabi sovereign wealth investor Mubadala, has said that the 1GW of hydrogen electrolysis capacity it expects to have on line at Huelva in 2030 should be enough to decarbonise its own fuels and petrochemicals business as well as the fertilizer business of Fertiberia, one of its partners in Huelva.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
29/05/24

US biodiesel imports doubled in 2023

US biodiesel imports doubled in 2023

Houston, 29 May (Argus) — US imports of biodiesel more than doubled in 2023, spurred by lower prices and shifting biofuels policies in Europe. Biodiesel imports averaged 33,000 b/d last year, compared with 16,000 b/d a year earlier, according to US Energy Information Administration (EIA) data. The rise in US imports was led by Germany, Europe's leading biodiesel producer. Biodiesel imports from Germany last year climbed to 11,000 b/d from 5,000 b/d in 2022. The US imports soybean oil and some UCO-based biodiesel from biofuel producer ADM's Hamburg, Germany, production facility. US biodiesel imports from Spain jumped last year to 6,000 b/d from 1,000 b/d. Rising European imports from China and lower blending targets on the continent pressured European biodiesel prices and posed an opportunity for US importers and blenders to avoid the more expensive domestic alternative. European Fame 0 prices averaged 382¢/USG last year, down by 30pc from 2022, while New York Harbor B100 prices fell by the same percentage but still averaged around $1/USG more than European biodiesel in 2023. US blenders can take advantage of the lower priced fuel while remaining eligible to receive renewable identification number (RIN) credits that show compliance with the US Renewable Fuel Standard program, as well as the $1/USG blenders' tax credit. Renewable diesel is not differentiated from biodiesel in EU regulatory programs, leading to a lower share of biodiesel in the EU biofuel pool, compared with the more versatile renewable diesel. Biodiesel must be blended with conventional diesel for motor use, while renewable diesel can be used as a drop-in fuel. Some EU countries have lowered their biofuels blending targets to combat inflation and rising fuel costs, according to the EIA and US Department of Agriculture, making more biofuel volumes available for export. Sweden last year cut its biodiesel blending mandate for 2024-2026 to 6pc from 30.5pc. Additionally, EU imports of Chinese biodiesel derived from used cooking oil (UCO) increased in 2023 by 20pc, contributing to Europe's lower prices. Through February this year, US biodiesel imports rose further, averaging 46,000 b/d, according to the most recent EIA data. But since the end of March, rising European biodiesel prices and a tightening arbitrage to the US has reduced the country's imports from the EU , according to Global Trade Tracker data. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

Pasture-for-biofuels can boost LatAm output


29/05/24
News
29/05/24

Pasture-for-biofuels can boost LatAm output

Belo Horizonte, 29 May (Argus) — Brazil, Argentina, Colombia and Guatemala can double their combined biofuel production by turning existing pasture land into crops for biofuel feedstocks, according to a University of Sao Paulo professor. The four countries already produce 24pc of global biofuels, including 29pc of all ethanol, Glaucia Mendes Souza said during a G20 Energy Transition Working Group meeting in Belo Horizonte, Brazil, today. But converting pastures to grow sugarcane, palm oil, corn and soybeans could increase that significantly and cut total CO2 emissions, she said. Souza highlighted six other nations with potential to greatly increase biofuel crops: China, India, Indonesia, Malaysia, South Africa and Thailand. If these 10 countries combined can turn 11pc of their current pastures into land to produce biomass or biofuel feedstocks, global biodiesel production would grow by 45.7bn l/yr (792,550 b/d), while global output of ethanol could increase by 64.7bn l/yr, she said. Brazil alone would increase ethanol production by 55pc. The country produced 35.4bn l of ethanol in 2023, according to hydrocarbons regulator ANP. For the four Latin American nations converting that much land toward biofuels would avoid 120mn t of CO2 equivalent (CO2e)/yr, up from the 63.8mn t of CO2e/yr avoided under current biofuels production, Souza said. For all 10 countries a combined 300mn t of CO2e/yr could be avoided. Brazil has the opportunity to "set an example" to the rest of the world, Souza said on the sidelines of the conference, as the country already serves as a benchmark for biofuel production. Key programs, such as the Renovabio biofuel policy, have helped turn Brazil into an energy transition leader, she said, while the pending fuel of the future bill could further those moves. But Brazil has plenty of room to improve, especially in the environmental arena, she said. "Brazil's deforestation rates contaminate our entire speech," she said. The rate of deforestation in Brazil's Amazon basin in the first quarter fell by 50pc from 2022 to 2023, and is down by 40pc in the first quarter of 2024 from a year earlier, according to government figures. But deforestation in the Cerrado tropical savanna biome, mostly located in the main Brazilian grain-producing state of Mato Grosso, grew by 68pc in 2023 from a year before, according to NGO Mapbiomas, which maps the country's land. Souza also called for more fiscal incentives for using crop byproducts, such as sugarcane bagasse, to produce biofuels. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Brazil could tap pastures to grow biofuel supply


29/05/24
News
29/05/24

Brazil could tap pastures to grow biofuel supply

Belo Horizonte, 29 May (Argus) — Brazil can increase its biofuel feedstocks supply by tapping into 28mn hectares (ha) of underutilized pastures, agriculture research center Embrapa's director Alexandre Alves said during a G20 Energy transition working group meeting. A study conducted by Embrapa earlier this year showed that Brazil has 28mn ha of "planted pastures with intermediate and severe levels of degradation" that can be used to grow new crops instead of for grazing cattle. These pastures could increase Brazil's total planted area by 35pc from the 2023-24 crop year, Alves said. Additionally, the country can tap into other crops to produce biofuel. Brazil mostly uses soybean and sugarcane to produce biofuels, but can use other less common crops — such as canola plants and macaw palm — he added. Brazil could also maximize its agricultural residuals to produce biofuels. Using surplus sugarcane bagasse and straw could supply 90pc of the country's demand for jet fuel through the alcohol-to-jet (ATJ) path. Meanwhile, sugarcane residues could supply approximately 30pc of the country's demand through the Fischer-Tropsch process, which uses a mixture of carbon monoxide and hydrogen to produce liquid hydrocarbons. "Both paths can be significant to the Brazilian market," Alves said. Brazil produced 35.4bn l (614,000 b/d) of ethanol and 45bn l of biodiesel in 2023, according to hydrocarbons agency ANP. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Viterra Australia bans canola treated with haloxyfop


29/05/24
News
29/05/24

Viterra Australia bans canola treated with haloxyfop

Sydney, 29 May (Argus) — Grain aggregator Viterra Australia will not receive canola treated with the herbicide haloxyfop from the 2024-25 harvest to ensure continued access to the EU market. Growers were advised of this change prior to the last harvest, giving the opportunity to review chemical use, according to Viterra. The change comes after the EU confirmed in January it would reduce the maximum residue limit (MRL) for the herbicide haloxyfop on canola from 0.2 mg/kg to 0.05 mg/kg from 19 August this year. Industry group Grain Trade Australia in response requested growers not to use haloxyfop, to ensure crops do not have residues above the EU's new limit and advised growers to use alternative herbicides to maintain EU market access. The EU is Australia's largest export destination for canola and where it is mainly used in biofuel production. In 2023, 41pc of all canola exports were sent to the EU, according to Australian Bureau of Statistics data. Market access to the EU is becoming more challenging for Australian agriculture exporters. The introduction of the EU Deforestation Regulation in December has raised concerns with some industry representatives, as they see the EU as unilaterally setting trade terms and introducing requirements irrelevant to Australian production systems. The EU announced in 2023 its intention to reduce the MRL for haloxyfop on canola from 0.2 mg/kg to 0.005 mg/kg, which is below the 0.05mg/kg coming into force in August. Industry bodies collectively warned that market access would be jeopardised if 2023-24 season canola treated with haloxyfob was delivered into the grain handling system, as the then-current label directions would result in crops with residues exceeding the EU's indicative MRL limit. Australian bulk handler GrainCorp confirmed deliveries of canola treated with haloxyfop have been banned since the 2023-24 harvest. By Edward Dunlop Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Singapore launches commercial methanol bunkering


28/05/24
News
28/05/24

Singapore launches commercial methanol bunkering

Singapore, 28 May (Argus) — Singapore has launched commercial-scale methanol bunkering at the Tuas port, after a successful run of its first simultaneous methanol bunkering and cargo operation (Simops) on 27 May. Bunkering operations for shore-to-ship, ship-to-ship, and simultaneous cargo operations while bunkering methanol or alternative fuels like ammonia and hydrogen, will now be available at the Port of Singapore, the Maritime and Port Authority of Singapore (MPA) announced. This development comes after MPA's inaugural Simops of Singapore-based shipping firm X-Press Feeders' first dual-fuel engine container vessel. The Rotterdam-bound vessel was refuelled in Singapore with close to 300t of bio-methanol by MPA-licensed bunker supplier Global Energy Trading. The methanol bunkering occurred concurrently while vessel containers were restowed and loaded, and was supported by digitalisation of the bunkering process for near real-time visibility for various stakeholders. All crew members were trained to handle methanol as a marine fuel and respond to emergencies, given that safety remains a key consideration when bunkering alternative fuels. X-Press Feeders' vessel was the first of 14 dual-fuel vessels that it has ordered. The China-built vessel is equipped with a German-designed dual-fuel engine and has the flexibility to operate on green methanol. The firm plans to operate its green methanol-powered feeders mostly in the ports of Rotterdam and Antwerp-Bruges, where it has a fuel supply contract with chemical manufacturing firm OCI Global. "We look forward to working with other like-minded partners, including on the use of digital bunkering and mass flow meter solutions, to operationalise the delivery of the new marine fuels in Singapore," MPA chief executive Teo Eng Dih said. Singapore is steadily advancing towards its multi-fuel transition for maritime decarbonisation. Another ship-to-ship delivery of 1,340t of blended 20pc bio-methanol combined with 80pc of conventional methanol was completed on 24 May. The alternative fuel blend is reported to provide 31pc in CO2 equivalent savings on a tank-to-wake basis as compared to operating on conventional very-low sulphur fuel oil (VLSFO) for the same distance. The Argus -assessed price for VLSFO stood at $582.68/t delivered on board (dob) Singapore on 27 May, while prices for B24 were assessed at $720.50/t dob Singapore. By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more