Spanish energy company Cepsa and Malaysian vegetable oil maker Apical have begun work on a €1.2bn biofuels plant in Andalusia.

When complete in 2026 the plant will be able to produce up to 500,000 tonnes of aviation fuel and diesel a year, doubling its current production capacity. The fuels will use agricultural waste or used cooking oils as its feedstock.

Cepsa said it would be the second biggest renewable fuel complex in Europe.

It will be built in Palos de la Frontera next to La Rábida Energy Park on the Mediterranean coast. It is expected to create 2,000 direct and indirect jobs during the construction and operation phases.

Andalusia regional president Juan Manuel Moreno Bonilla said his government wanted to become Europe’s major producer and distributor of clean energy.

Compared to fossil fuels, the biofuels produced in the plant would prevent the emission of 3 million tons of carbon dioxide a year, equivalent to 4% of road transport emissions in Spain.