Repsol secures EIB financing for Cartagena biofuels plant

The EIB financing will also support research programs for advanced biofuel technologies conducted at Repsol’s Technology Lab in Madrid.

The EIB is committed to financing green transformation, the use of alternative energy sources, and innovative research programs across Europe. The EIB loan contributes to Repsol’s strategy to transform its business model and to its decarbonization strategy. We are pleased to be collaborating with companies such as Repsol which are taking steps towards decarbonizing business activity and strengthening resilience to climate change, said Ricardo Mourinho Félix, VP of EIB during the signature event in Madrid.

Construction underway

The Cartagena biofuels plant is located within the premises of Repsol’s industrial complex in Cartagena, Region of Murcia – an EU cohesion region.

Construction work began in March this year and is scheduled for completion in the second half of 2023.

Once completed, the plant will have the capacity to process 300 000 tonnes per annum (tpa) of lipidic residues for the production of up to 250 000 tpa of 2^nd generation or/and advanced biofuels for the transport sector.

We are proud to be the first company in the sector to obtain this type of financing, which is a result of our commitment to executing ground-breaking projects in support of a rapid, effective, and just energy transition, Antonio Lorenzo, CFO at Repsol.

Both 2^nd generation- and advanced biofuels

The Repsol plant will produce second-generation and advanced biofuels from different types of waste primarily from the agri-food industry, such as used cooking oils (UCO), as part of the transition process towards a more circular economy.

While second-generation biofuels are derived from a broad range of biogenic residues including UCO, certain animal fats, and vegetable oils that cannot be used as food or are derived from crops that do not compete with food, advanced biofuels are produced specifically from a subset of biogenic feedstocks listed in Part A of Annex IX of the REDII directive.

These biofuels are a sustainable solution for all segments of mobility, especially for those that have no other alternative to decarbonize their activity, such as maritime, long-distance, or aviation.

Such biofuels can reduce net carbon dioxide (CO₂) emissions by between 70 percent and 90 percent on a life cycle basis compared with the traditional fuels they replace.

Lowering EU dependency on fossil fuel imports

This innovative plant will contribute to the development of low-carbon fuels to be used in hard-to-decarbonize and hard-to-electrify sectors.

The project is fully aligned with the European Green Deal and the Fit for 55 packages and will support energy security by lowering EU dependency on fossil fuel imports.

Repsol’s decarbonization path earmarked EUR 6.5 billion for low-carbon initiatives in 2021-2025 (35 percent of total investment).

EIB has a longstanding relationship with Repsol and has financed over ten projects, since the first agreement in 1988, soon after Spain’s accession to the European Economic Community.

EIB funding to support its green transformation is in line with the EIB contribution to the REPowerEU recently approved by the EIB’s Board of Directors.

Repsol was one of the first companies in its industry to commit to zero net emissions by 2050 and is implementing an ambitious decarbonization strategy in alignment with the Paris Agreement and the United Nations Sustainable Development Goals (UN SDGs).

The company’s roadmap includes emission reduction targets with a reduction in the Carbon Intensity Indicator of 15 percent by 2025, 28 percent by 2030, and 55 percent by 2040.