Repsol YPF Joins Spanish Firms to Develop Biofuel

Repsol YPF Joins Spanish Firms to Develop Biofuel

Spanish energy group Repsol YPF said yesterday it would seek to develop the use of farm waste as a fuel additive along with engineering firm Abengoa and sugar company Azucarera Ebro Agricolas.

Organic ethanol, or bioethanol, is obtained from fermentation of cereal and other farm waste and may be used directly as an additive or transformed into gasoline additive Ethyl Tertio Butyl Ether (ETBE), Repsol YPF said in a statement.

Last August, Abengoa and Azucarera announced a joint investment of 21 billion pesetas ($110.5 million) for a plant to produce bioethanol to be used with lead-free petrol.

The plant was expected to generate annual sales of 18.5 billion pesetas and produce 200 million litres of the product.

"The work will be aimed at solving technical problems linked to the blending," Repsol YPF said about its agreement with Abengoa and Ebro.

Repsol YPF already uses farm waste to produce ETBE at its La Coruna and Puertollano refineries and plans to open a new organic ethanol plant in La Coruna by the end of 2001 to supply Repsol refineries in Tarragona and Bilbao.

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