Cepsa and PreZero Spain sign biomethane agreement

Cepsa and PreZero Spain have signed a strategic partnership that will enable both companies to advance their decarbonisation 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 decarbonise the land fleet operated by PreZero in Spain and Portugal.
Both companies said they 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, 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 and is already building the largest 2G biofuels plant in southern Europe to produce sustainable aviation fuel (SAF) and renewable diesel.
Carlos Barrasa, executive vice president of commercial & clean energies at 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.
"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 decarbonised economy."
Gonzalo Cañete, CEO of PreZero in Spain and Portugal, 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 decarbonisation 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."