Repsol and Bunge forge alliance to advance renewable fuels in Europe
SPAIN – Spanish multi-energy company Repsol has announced a strategic partnership with US-based Bunge Global SA to bolster opportunities for renewable fuels, aligning with the European Union’s objectives for lower carbon-intensity feedstocks.
This partnership is strategically important, considering that the Global Renewable Fuel Market was valued at US$925.1 billion in 2022 and is expected to grow at a CAGR of 8.01% over the forecast period of 2023-2030, reaching a value of US$1713.4 billion by 2030, according to Vantage Market Research.
As part of this initiative, Repsol is set to acquire a 40% stake in three industrial facilities owned by Bunge Iberica, a subsidiary of Bunge, for a sum of US$300 million, with an additional US$40 million in contingent payments, subject to regulatory approvals.
The partnership between Repsol and Bunge signifies a concerted effort to expedite the production of renewable fuels, which is crucial in meeting the escalating demand within the European market.
By leveraging their respective expertise and resources, both companies seek to address the imperative for sustainable energy solutions.
Bunge will maintain operations at its three plants in Bilbao, Barcelona, and Cartagena, which are integral to producing oils and biofuels while continuing its role as a prominent producer of protein meals and vegetable oils in Spain.
Julio Garros, co-president of Agribusiness at Bunge, expressed enthusiasm for the collaboration, emphasizing its role in facilitating the decarbonization of agricultural and oil supply chains.
The partnership intends to explore avenues for enhancing the availability of non-food lipidic feedstocks, contributing further to the renewable energy landscape.
Repsol, with an annual production capacity of 1.1 million tonnes of renewable fuels, anticipates a substantial increase in output following the partnership.
The company’s ambitious plans include a 55% rise in production by 2027, supported by the commencement of operations at its advanced biofuels plant in Cartagena and the retrofitting of another unit in Puertollano, Spain.
“With this agreement, Repsol has secured its leadership in renewable fuels in the Iberian Peninsula,” said Juan Abascal, executive managing director for 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.”
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