Repsol and Bunge to partner to boost supply of renewable fuels in Spain

Through this strategic agreement, the multi-energy company Repsol acquires 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 US$300 million plus up to US$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 tpu of renewable fuels saves the CO₂ emissions equivalent of more than 1.7 million electric vehicles. The company expects to increase its output by up to 55%, reaching 1.7 million t 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 1900 by 2027.

Repsol is starting up its 250 000 tpy 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 tpy of renewable fuel.

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

“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,” said Juan Abascal, Executive Managing Director for Industrial Transformation and Circular Economy at Repsol.

“This is an exciting step for Bunge in Spain and supports our commitment to create alternative paths towards the decarbonisation of agricultural and oil supply chains in our industry. 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,” said Julio Garros, Co-President, Agribusiness at Bunge.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/28032024/repsol-and-bunge-to-partner-to-boost-supply-of-renewable-fuels-in-spain/