PROMOTED: Cepsa's Second-Generation (2G) Biofuel Bunkers are Meeting Demand for Lower Carbon Fuels

by CEPSA
Wednesday July 31, 2024

Energy firm Cepsa is meeting the shipping industry's developing demand for lower carbon fuels by producing and supplying second-generation (2G) biofuel blends as part of its 2050 decarbonization strategy.

Cepsa's 'Positive Motion' strategy, now in its second year focuses on seeking and developing sustainable solutions across various industries with the goal of achieving net-zero emissions by 2050.

Given that over 80% of international goods trade occurs by sea, finding solutions to reduce carbon emissions in the maritime transport sector is crucial for a successful global energy transition.

Second-generation biofuels are one of the main pillars of the Cepsa Marine Fuels team's work towards these goals, which the team began offering last year. The company has made significant investments in sustainable fuels:

  • Cepsa and Bio-Oils have begun construction of the largest 2G biofuels plant in southern Europe
  • Cepsa and Bio-Oils are constructing the largest 2G biofuels plant in southern Europe, with an investment of €1.2 billion. This facility will double the current production capacity of second-generation biofuels, reaching one million tons and commencing operations in 2026.

Furthermore, in April, Cepsa collaborated with Glander International Bunkering to arrange the first bunker supply of 100% HVO (Hydrotreated Vegetable Oil) at Algeciras. Although the seismic research vessel Ramform Hyperion is not subject to the EU ETS (Emissions Trading System), the biofuel supply was a preemptive part of Cepsa's decarbonization strategy.

  • HVO 100 is produced from bio-circular waste from biological origin such as used cooking oil and agricultural waste. Throughout its lifecycle, it can reduce CO2 emissions by up to 90% compared to traditional fuels.
  • As a drop-in bunker fuel, it is fully compatible with current ship engines. This means that vessels can seamlessly transition to using HVO 100 without requiring any modifications or adjustments to their existing engine systems.

WATCH: Supply of HVO 100 at the port of Algeciras

Additionally, the International Maritime Organization (IMO) aims to achieve net-zero greenhouse gas (GHG) emissions from international shipping by or around 2050. This aligns with Cepsa's commitment to sustainable solutions and decarbonization efforts in the maritime sector.

Wider Maritime Decarbonisation Plans

Last year Cepsa has introduced a hybrid barge for marine fuel supply as part of its commitment to decarbonising the maritime sector. Operating in the Bay of Algeciras, this vessel is the first of its kind in Europe.

The diesel-electric hybrid barge, operated by Cepsa, supplies fuels to ships in the Bay of Algeciras. The barge achieves a remarkable 30% reduction in fuel consumption and over 35% lower greenhouse gas emissions compared to conventional barges. Equipped with electric propulsion generators and battery systems for auxiliary services in port, the optimized barge is also equipped with a mass flow meter for precise fuel measurement.

Cepsa plans to have a total electrolysis capacity of 2 GW across two centers in Palos de la Frontera (Huelva) and San Roque (Cadiz). These centers will produce 300,000 metric tons of green hydrogen annually. The Andalusian Green Hydrogen Valley, Europe's largest green hydrogen project, will further enable the supply of green ammonia and green methanol, enhancing energy independence and ecological transition.

The Algeciras-Rotterdam maritime corridor will facilitate clean fuel supply for maritime transport. Cepsa collaborates with C2X to build and operate a green methanol production plant at Huelva Port. This plant, estimated to produce 300,000 metric tons per year, contributes to decarbonizing challenging sectors like maritime transport.

Finally, alliances between Cepsa and European multinationals such as Yara Clean Ammonia from Norway and Gasunie from the Netherlands aims to create a renewable energy supply chain for decarbonizing industry and maritime transport.

Cepsa, a forward-thinking energy company, has made significant strides in decarbonizing the maritime sector. Their pioneering hybrid barge in the Bay of Algeciras achieves impressive fuel efficiency and reduced emissions. Additionally, their green hydrogen production centers and collaboration on green methanol further position Andalusia as a leader in sustainable energy.