CARTAGENA ADVANCED BIOFUELS

The project concerns (i) the construction and operation of a 255ktpa first-of-a-kind second generation biofuels production facility at Repsol's refinery in Cartagena (Murcia), based on a Hydrogenated Vegetable Oil (HVO) technology and; (ii) the support to research programmes toward advanced biofuels technologies conducted at the promoter's facilities.

The aim is to produce sustainable advanced biofuels for transport, including aviation (SAF - Sustainable aviation fuel), from used cooking oils and other fat-rich waste streams generated in food value chains, by using re-engineered HVO technologies. The development of second generation (advanced) biofuel production technologies is identified as a key technological pathway towards the decarbonisation of transport under the Renewables Energy Directive II (2018/2001/EU). It is also one of the priorities of the European Strategic Energy Technology Plan (SET-Plan) and projects of this kind have been receiving strong grant support throughout H2020 and Horizon Europe. The project is in line with several key EU policies, namely the Green Deal, REPower EU and the Fit-for-55 package (regarding the increase of renewables in transport and reduction of transport emissions), as well as with the aim of reducing dependence on Russian fossil fuels and fast-forward the green transition.

The project generates significant additionality in terms of positive knowledge, carbon and environmental externalities through RDI driven commercial deployment of innovative advanced bio-fuels production, with low-carbon and low-pollution energy generation. The project will also contribute to increasing security of energy supply by reducing EU dependency on imports of fossil fuels. Security of energy supply can be considered a public good. Furthermore, the part of operation located in an EU cohesion region supports economic and social cohesion.

The project is fully aligned with several key EU policies, namely the Green Deal and the Fit-for-55 package. A valuable merit of the operation is that it targets supplying second generation bio-fuels also to "hard to decarbonise" domains, such as aviation, necessary to achieve the EU decarbonisation objectives for 2030 and 2050, as well as other relevant EU Directives, including the REDII and ReFuelEU Aviation. 

The EIB has a significant role to play in the support of industrial scale-up of relevant low carbon technologies. In this specific project, given its complexity and intrinsic "technological risk", the EIB supports the first commercial implementation for this advanced biofuels technology.

The EIB financial contribution is considered very good and valuable to the client, as it offers more flexible conditions compared to market alternatives, in particular in terms of long availability period and flexible disbursements. The EIB loan will diversify the borrower's lender base and increase the share of loans in its total financing.

Compliance with the EU environmental legislation, notably the Environmental Impact Assessment (EIA) directive 2014/52/EU amending the EIA Directive 2011/92/EU, will be reviewed during appraisal, as well as well compliance with the industrial emissions directive (IED) 2010/75/EU and other applicable environmental laws.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation (Directive 2014/24/EU or 2004/18/EC, where applicable), then the Bank would require the promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU or 2004/18/EC, where applicable), as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.