RGE’s Apical in 1 billion euro JV to build largest biofuels plant in southern Europe
Vivienne Tay
VEGETABLE oil processor Apical, a subsidiary of Singapore-headquartered RGE, has entered into the sustainable aviation fuels market through a new partnership, it said on Monday (Apr 17).
Up to one billion euros (S$1.5 billion) will be invested into the joint venture, which was formed between Spain energy company Cepsa and Apical subsidiary Bio-Oils. Together, they will construct the largest second-generation biofuels plant in southern Europe.
Apical will provide majority of the feedstock supply for the plant from its agricultural waste and residue. At the same time, Cepsa contributes its technical expertise in large industrial project development and fuel production, Apical said.
The new plant, which is slated to begin operating in the first half of 2026, will be located at Cepsa’s La Rabida Energy Park in Huelva, Spain.
It will be able to produce up to 500,000 tonnes of sustainable aviation fuel or renewable diesel annually. Apical said this could reduce carbon dioxide emissions by up to 90 per cent compared to traditional fuels.
The plant will also be designed as a “digital native plant”, including industry advances in artificial intelligence, Internet of Things and data analysis to maximise efficiency while ensuring high safety and environmental protection standards.
Citing data from the International Civil Aviation Organisation, Apical executive director Pratheepan Karunagaran said aviation emissions account for 2-3 per cent of global energy-related carbon dioxide emissions. This is expected to grow by 300-700 per cent by 2050.
“To reduce the direct carbon emissions of flying, sustainable aviation fuel can be an immediate solution,” he said.
Apical president Yeo How noted that the company’s ample supply of second-generation feedstock is key to ensuring the new joint venture delivers on the shared vision to reduce greenhouse gas emissions across air, sea and land transport.
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