Bio-ethanol production provides a new use for arable land and agricultural and woodland waste.

Repsol YPF, Azucarera Ebro and Abengoa have reached an agreement for projects and joint ventures relating to the use of ethanol from agricultural feedstock in bio-fuels. Work under this collaboration will address to solve current technical difficulties in direct mixing or blending.

This venture undertaken by Repsol YPF is complementary to the project presented by Abengoa and Azucarera Ebro for the manufacture of bio-ethanol in Castilla and Le�n.

Bio-ethanol is obtained by fermenting grain, bio-mass and other agricultural products, and may be mixed in the formula for bio-fuels either directly or post transformation into ETBE. Whether mixed directly or following transformation, ethanol may be used as a component for renewable gasoline, which helps to improve the environment.

Repsol YPF currently produces ETBE at its La Coru�a and Puertollano refineries, using as a feedstock the bio-ethanol which Ecocarburantes Espa�oles S.A. (affiliate of Abengoa) has been producing since the end of last year.

A new plant at Curtis, La Coru�a, belonging to Bioetanol Galicia (another Abengoa affiliate), will go on stream at the end of 2001, and will supply the Repsol YPF plants at Tarragona and Bilbao.

Repsol YPF, Abengoa and Azucarera Ebro have joined forces in compliance with the government directives under R.D. Law 6/2000, dated June 23^rd, referring to the development of bio-fuel, and EU recommendations in the White Book of Energy (released in 1997), setting a target for renewable energy to cover 12% of overall EU energy consumption by 2010.