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EIB and CEPSA sign EUR 285 mil loan to finance second-generation biofuels plant

Biofuels produced by plant will serve industries such as aviation, maritime transport and heavy-duty road transport to reduce emissions, says EIB.

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EIB and CEPSA sign EUR 285 mil loan to finance second-generation biofuels plant

The European Investment Bank (EIB) on Thursday (27 June) said it signed a EUR 285 million (USD 307 million) loan agreement with Cepsa for the construction of an advanced biofuels plant to be located next to La Rábida Energy Park in Palos de la Frontera, Andalusia.

The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste, advancing the circular economy. 

Once operational, the facility is expected to process as much as 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels annually.

The biofuels will serve industries such as aviation, maritime transport and even heavy-duty road transport for which decarbonisation and electrification pose challenges. Biofuels are an immediate solution to reduce CO2 emissions from this sector, without making changes to existing engines.

“This loan is a clear example of how the EIB promotes the energy transition also in hard to abate sectors. This project will contribute to make Spain one of the leading countries in the production of biofuels,” said Gilles Badot, director of EIB operations for Spain and Portugal.  

“Supporting private companies like Cepsa, which are investing in this transition and advancing their own decarbonisation strategies, is one way the EIB is accelerating the transition to a more sustainable energy model that promotes EU energy autonomy.”

The investment by Cepsa and Bio-Oils will be made entirely in Andalusia, a cohesion region where per-capita income is below the EU average. Given the project scope, it is expected to have a positive impact on the local economy by boosting growth and job creation. As a result, the loan signed with Cepsa makes a significant contribution to the EIB’s commitment to economic, social, and territorial cohesion.

“We are grateful for the EIB’s support to this project, which is key to our Positive Motion strategy and to Spain’s and Europe’s progress towards the necessary energy independence. This plant will enable us to take a giant step forward in the production of green molecules, with the aim of facilitating the immediate decarbonisation of land, sea and air transport by reducing CO2 emissions by up to 90% compared with traditional fuels,” said Maarten Wetselaar, Cepsa’s CEO.

This project supports the decarbonisation objectives of the European Green Deal. It is also part of the EIB’s action plan to support REPowerEU in ensuring energy security and reducing EU dependence on fossil-fuel imports.

The project is supported by InvestEU, an EU programme to mobilise more than €372 billion of additional investment in the period 2021-2027. It furthers one of the programme’s main objectives: developing the energy sector and the sustainable bioeconomy.

With this new arrangement, the EIB is continuing to support Cepsa’s decarbonisation strategy. It is the third financing operation with Cepsa in the last two years to accelerate this strategy. 

The previous two were a loan of EUR 80 million for photovoltaic plants in Andalusia and a loan of EUR 150 million for Cepsa’s network of electric charging stations in Spain and Portugal.

 

Photo credit: European Investment Bank
Published: 1 July, 2024

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Dutch inland barge “Birjo II” to fully operate on B100 bio bunker fuel

Conversion of the barge to run on B100 demonstrates how existing barges can already contribute to a more sustainable transport sector, says Sunoil.

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Dutch inland barge “Birjo II” to fully operate on B100 bio bunker fuel

Biofuel producer Sunoil recently said it successfully converted the barge Birjo II to run on 100% biodiesel (B100), in collaboration with BFT Tanker Logistics. 

The company said the conversion of the barge to run on B100 marks an important step toward reducing emissions within inland shipping and demonstrates how existing barges can already contribute to a more sustainable transport sector.

The Birjo II, owned by DK Shipping, is a large barge used for transporting biofuels on Dutch inland waterways. It is primarily used for transporting biodiesel from Sunoil’s production facility in Kampen to its storage locations, while also carrying out direct deliveries to customers.

By transitioning from fossil fuel to B100, the barge can reduce CO₂ emissions by up to 90% while continuing normal operations without replacing the engine itself. 

“This makes Birjo II one of the first barges in the world capable of running fully on 100% biodiesel,” the company added. 

The barge will be able to be fueled directly from Sunoil’s Kampen location, creating a fully integrated renewable fuel chain from production to transport and end use.

“What makes this project especially valuable for Sunoil is that Birjo II now operates on our own biodiesel while transporting renewable fuels between our locations and customers,” said Jeroen Hovius, Chief Commercial Officer at Sunoil. 

“Together with BFT, we are continuing a strong long-term collaboration focused on practical solutions that help make inland shipping more sustainable. At the same time, this project creates a platform for the conversion and rollout of multiple barges operating on B100 across Europe.”

Sunoil said the successful conversion of Birjo II demonstrates that existing inland shipping assets can already be adapted today to significantly reduce emissions. 

“It highlights how practical renewable fuel solutions can support a more sustainable future for inland shipping without requiring full vessel replacement,” it added. 

 

Photo credit: Sunoil
Published: 3 June, 2026

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