Teaming up to develop new biofuels

This alliance, the first of its kind in Europe, will help to accelerate ramp-up of production of these fuels for all transport sectors, including the shipping industry, as mandated by the European Union.

“With this agreement, Repsol has secured its leadership in renewable fuels in the Iberian Peninsula,” said Juan Abascal, Industrial Transformation and Circular Economy at Repsol.

“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.”

Strategic agreement

Through the agreement, the multi-energy company Repsol will acquire 40% of three industrial facilities that are part of Bunge Iberica, one of Bunge’s subsidiaries in the Iberian Peninsula, for a total amount of $300 million plus up to $40 million in contingent payments.

Under the agreement, Bunge will continue to operate its three plants dedicated to the production of oils and biofuels in Bilbao, Barcelona and Cartagena, near Repsol’s industrial complexes located in the same regions. Bunge will also continue to be a key producer of protein meals, vegetable oils and distributor of agricultural commodities in Spain.

Through the partnership, Repsol will increase its access to a wide portfolio of low-carbon intensity feedstocks to produce renewable fuels, an immediate way to accelerate the reduction of emissions from transport, including cars, trucks, airplanes and shipping.

Repsol’s expects to increase its output of renewable fuels by up to 55%, reaching 1.7 million tonnes in 2027.

It is accelerating the rollout of renewable fuels at its service station network – the biggest in Spain – by adding pumps which supply with 100% renewable fuel.

Currently, the company has more than 120 service stations with 100% renewable fuels, with the objective of reaching 600 by the end of the year and 1,900 by 2027.

In order to ramp up production, Repsol is starting up its 250,000 tonee per 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 tonnes of renewable fuel per year.