Repsol and Bunge have announced a strategic partnership to increase the supply of renewable fuels in Spain. As part of the agreement, Repsol has acquired a 40% stake in three industrial facilities from Bunge Iberica for a total amount of $300 million. The transaction also includes up to $40 million in contingent payments, subject to customary closing conditions and regulatory approvals.
Repsol's current production capacity of renewable fuels stands at 1.1 million tons per year, equivalent to the CO2 emissions saved by more than 1.7 million electric vehicles. The company aims to increase its output by up to 55%, reaching 1.7 million tons by 2027. To achieve this goal, Repsol is accelerating the rollout of renewable fuels at its service station network, with plans to increase the number of stations offering 100% renewable fuels from 120 to 1,900 by 2027.
Additionally, Repsol is starting up a 250,000 tons-a-year advanced biofuels plant in Cartagena, Spain, and retrofitting another unit at its industrial complex in Puertollano, Spain, with a capacity to produce 200,000 tons of renewable fuel per year.
The partnership aims to explore opportunities to increase the availability of non-food lipidic feedstocks for the renewable fuels market. Juan Abascal, Executive Managing Director for Industrial Transformation and Circular Economy at Repsol, stated that the agreement solidifies Repsol's leadership in renewable fuels in the Iberian Peninsula. Julio Garros, Co-President, Agribusiness at Bunge, highlighted the commitment to creating alternative paths towards decarbonization in the agricultural and oil supply chains.
Repsol, a global multi-energy company, is focused on transforming its industrial complexes into multi-energy hubs capable of processing a wide array of waste materials into products with a low, zero, or negative carbon footprint. The company's total production capacity is expected to reach between 1.5 and 1.7 million tons in 2027 and up to 2.7 million tons by 2030.
Bunge, a leading producer and supplier of specialty plant-based oils and fats, aims to strengthen global food security, increase sustainability, and help communities prosper through its partnerships with farmers and customers.
This strategic alliance represents a significant step towards meeting the growing demand for lower carbon intensity feedstocks and accelerating the production of renewable fuels, in line with the European Union's mandates. Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $99.36. For the full picture, make sure to review Bunge Global's 8-K report.
