Spanish oil and gas company Repsol has formed a partnership with Bunge, an agribusiness company, to enhance the supply of renewable fuels.
The collaboration aims to meet the increasing demand for lower-carbon-intensity feedstocks for renewable fuel production.
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As part of the agreement, Repsol will acquire a 40% stake in three of Bunge Iberica’s industrial facilities on the Iberian Peninsula.
The acquisition is valued at $300m (€276.27m), with an additional contingent payment of up to $40m.
Bunge will maintain operations at its oil and biofuels plants in Bilbao, Barcelona and Cartagena, which are located near Repsol’s industrial complexes.
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Repsol’s investment in renewable fuels is a key component of its strategy to reduce emissions in the transport sector, which includes cars, trucks, aircraft and shipping.
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By GlobalDataThe company’s current renewable fuels production capacity stands at 1.1 million tonnes per year, with plans to increase output by 55% to 1.7 million tonnes by 2027.
Repsol is also deploying renewable fuels across its service station network, with a target of 600 stations by the end of the year and 1,900 by 2027.
The company is launching a 250,000 tonnes (t) per year advanced biofuels plant in Cartagena, the first in the Iberian Peninsula, and retrofitting another unit in Puertollano for an additional 200,000t of renewable fuel annually.
Further, the partnership will explore opportunities to increase the availability of non-food lipidic feedstocks for the renewable fuels market.
Repsol executive managing director for industrial transformation and circular economy Juan Abascal said: “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 road map to provide society with solutions to reduce the net emissions of CO₂ from transport as quickly and efficiently as possible.”
The transaction is pending customary closing conditions including regulatory approvals.
Last month, UK energy company Centrica agreed to purchase one million tonnes of LNG per year from Repsol.
