Update on the progress of the Barcial del Barco Biorefinery Project

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Last update: 25/11/2016

 Since I became aware of the Multifunctional Biorefinery Project in Barcial del Barco (Castilla y León, Spain) promoted by Magdala & MF Investment, I have followed with growing interest its evolutions (see “Rural development and biorefineries – The case of Barcial del Barco”). After having experienced a difficult period full of unpromising auguries, the initiative remains very much alive and is about to become a reality that boosts the economic development of the zone.

The project already has: the environmental authorizations; agreements for long-term supply of feedstock with agricultural organisations; long-term selling agreements for all the products; process patents; construction guaranties; references ensuring that technological risks do not exist. Moreover, all the political parties, unions and agricultural organisations of the zone have expressed its support to the project.

Only financial aspects are still pending. Currently, promoters are working with an organism of the Castilla y León Regional Government to close €40 million of equity. Moreover, it is expected that the Central Government can provide a bank endorsement to guarantee the nominal value of the investors. The total investment will amount to €140 million and the circulant will be finance with the sales. After closing the fund, the construction could start and the plant would be operational in 18 months.

Waiting for the definitive announcement of the beginning of the construction works, I will summarize briefly some of the most relevant news of the last months and weeks:
  • Unanimous approval in the Regional Parliament of Castilla y León for a proposal in favour of the biorefinery (July 1st 2016) and in the Regional Economy Commission for a non-law proposition to deem the project to be strategic at the regional level (March 11th 2016).
  • The project is eligible for support of the Juncker Plan through the European Investment Bank (Summer 2016). John Bell (Director for Bioeconomy of the DG for Research & Innovation of the European Commission) wrote a letter to Vicente Merino (General Manager of Magdala) confirming the interest of the President Juncker.
  • The “Lanzadera de Empresas” (an organism for the financial support of new business) of the Economic Development Agency of Castilla y León cooperates in the search of financing sources for the project (Summer 2016).
  • CECALE (Confederation of Business Organizations in Castilla y León) expresses its support to the project and unveils the interest of some investing funds in this initiative (one week ago). The interested funds have requested for documentation to the promotors in order to take a decision.
  • The “Plataforma Probiorrefinería” (a popular initiative in favour of the biorefinery) stays that the project follows its administrative course, slowly but consolidating the progresses (one week ago).
  • The Commision for Industry of the Spanish Congress has pledged its support for the biorefinery of Barcial del Barco (first week of November). The four largest political groups have agreed to support a non-legislative motion in favor of the project. 
  • Vicente Merino introduces the project of the Multifunctional Biorefinery in the Room Willy Brandt of the European Parliament (November 8th 2016). 
  • Spanish Members of the European Parliament of all of the groups sign a manifest in favor of the biorefinery (second week of November). The period to sign will be opened until the end of November for Spanish MEPs. By the deadline, the manifest and the signs will be submitted to several Commissioners as well as the President and the European Investment Bank.

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