Repsol, Bunge create partnership in Spain to boost supply of renewable fuels

Photo: Repsol

Repsol announced March 26 that it and Bunge have agreed to partner in the development of new opportunities to help meet the growing demand for lower carbon-intensity feedstocks for the production of renewable fuels.

This alliance, the first of its kind in Europe, will help to accelerate the ramp up of production of these fuels mandated by the European Union.

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

The transaction is subject to customary closing conditions, including regulatory approvals.

Under this 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 increases 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 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.

The company expects to increase its output by up to 55 percent, reaching 1.7 million tons in 2027.

It is accelerating the rollout of renewable fuels at its service station network—the biggest in Spain—by adding pumps that supply 100 percent renewable fuel.

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

Repsol is also starting up its 250,000 ton-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 tons of renewable fuel per year. 

Under the partnership, the companies plan to explore other areas of cooperation and project development designed to increase the potential availability of nonfood lipid feedstocks for the renewable fuels market.

“With this agreement, Repsol has secured its leadership in renewable fuels in the Iberian Peninsula,” said Juan Abascal, an executive managing director with 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.”

Julio Garros, co-president of agribusiness at Bunge, added, “This is an exciting step for Bunge in Spain and supports our commitment to create alternative paths towards the decarbonization of agricultural and oil supply chains in our industry. Together, thanks to our companies’ in-depth expertise in the agrifood sector and global connectivity for renewable feedstocks, we aim to unlock wider opportunities in the renewable energy space.”