Spain's two largest oil producers are making large investments in the biofuels industry.

Spain's two largest oil producers are making large investments in the biofuels industry. Repsol and renewable energy firm Acciona will spend a combined 300 million [euro] ($383 million) to build biofuel plants that will be able to produce more than I million metric tons of biodiesel a year.

The companies claim that this is the largest program in the world for biodiesel plant construction, and it is expected to lower Spain's carbon dioxide emissions by 3 million metric tons per year. Repsol will also be heading an organization of 15 Spanish companies that are planning a four-year biodiesel R&D program that aims to lower production costs of biofuels and to increase the supply of biofuel feedstock. The program is receiving a f22 million ($28 million) grant from Madrid's Center for Technological and Industrial Development. Cepsa plans to partner with Abengoa Bioenergy to construct a 42-million [euro] ($54 million) biodiesel plant, and with Bio-Oils Energy to build a 40-million [euro] ($51 million) biodiesel plant. These projects are in keeping with Spain's 23 billion ($29.4 billion) national renewable energy program. According to the program, by 2010, 5.83% of total fuels used by automobiles in Spain will be biofuels.

Source: Chemical Week