Repsol and Bunge join forces to enhance renewable fuel supply in Spain
Repsol and Bunge have teamed up to amplify the production and availability of renewable fuels in Spain, marking a significant stride toward meeting the European Union’s low-carbon mandates. This collaboration represents the first of its kind in Europe, set to expedite the production of fuels with reduced carbon intensity.
Under this strategic alliance, Repsol has acquired a 40% stake in three of Bunge Iberica’s industrial facilities, with an investment totaling USD300 million, plus contingent payments of up to USD40 million. This move is contingent on customary closing conditions, including regulatory approvals. Bunge Iberica, a subsidiary of Bunge in the Iberian Peninsula, will continue its operations in Bilbao, Barcelona, and Cartagena, Spain, producing oils and biofuels in close proximity to Repsol’s industrial complexes in the same regions.
Repsol aims to increase its access to low-carbon intensity feedstocks, essential for producing renewable fuels that can significantly reduce emissions from various modes of transport, including cars, trucks, airplanes, and ships. The company is on track to boost its renewable fuel production capacity by up to 55%, aiming to reach 1.7 million tons by 2027.
Repsol’s current production capacity of 1.1 million tons of renewable fuels per year saves the CO2 emissions equivalent of more than 1.7 million electric vehicles.
Repsol is starting up its 250,000 tons-a-year advanced biofuels plant in Cartagena, Spain, the first of its kind in the Iberian Peninsula. The company is retrofitting another unit at its industrial complex in Puertollano, Spain, with a capacity to produce 200,000 tons of renewable fuel per year.
Repsol is also making strides in its service station network, which is the largest in Spain, by introducing pumps that supply 100% renewable fuel. Currently, more than 120 service stations offer renewable fuels, with plans to expand to 600 by the end of the year and 1,900 by 2027.
The partnership between Repsol and Bunge extends beyond these immediate initiatives, as both companies plan to explore further areas of collaboration and project development. Their joint efforts aim to increase the availability of non-food lipidic feedstocks for the renewable fuels market, a crucial component in the transition to a more sustainable energy future.
Juan Abascal, executive managing director for Industrial Transformation and Circular Economy at Repsol, emphasised the significance of this agreement, stating, “With this agreement, Repsol has secured its leadership in renewable fuels in the Iberian Peninsula. It is clear proof of the steadfast progress we are making in our ambitious roadmap to provide society with solutions to reduce the net emissions of CO2 from transport as quickly and efficiently as possible.”
Julio Garros, co-president of Agribusiness at Bunge, expressed his enthusiasm for the partnership, highlighting its alignment with Bunge’s commitment to decarbonising agricultural and oil supply chains. He noted, “Together, thanks to our companies’ in-depth expertise in the agri-food sector and global connectivity for renewable feedstocks, we aim to unlock wider opportunities in the renewable energy space.”
This collaboration between Repsol and Bunge represents a significant step forward in the journey towards a more sustainable and low-carbon future, setting a precedent for similar initiatives in Europe and beyond.
