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Repsol, Bunge announce Spanish partnership

Repsol, Bunge announce Spanish partnership
The Bunge Ibérica oilseeds processing facility in Bilbao, Spain (photo courtesy Repsol).

Spain-headed multi-energy major Repsol S.A. and global oilseed processing major Bunge Ltd 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, Repsol will acquire a 40 percent interest in three industrial facilities that are part of Bunge Ibérica S.A.U, 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 Ibérica 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, and vegetable oils and a 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.

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 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.

Expanding production and distribution

Repsol has a current production capacity of 1.1 million tonnes of renewable fuels and the company expects to increase its output by up to 55 percent, reaching 1.7 million tonnes in 2027.

It is accelerating the rollout of renewable fuels at its service station network – the largest 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, intending to reach 600 by the end of the year and 1,900 by 2027.

Repsol is starting up its 250,000 tonnes-per annum advanced biofuels plant in Cartagena, 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 tonnes 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 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.

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