Repsol and Bunge have forged a pioneering partnership aimed at addressing the rising demand for lower carbon intensity feedstocks essential for renewable fuel production. This landmark alliance, the first of its kind in Europe, is poised to expedite the scaling up of renewable fuel production mandated by the European Union.

As part of the strategic agreement, Repsol, the multi-energy company, has acquired a 40 percent stake in three industrial facilities belonging to Bunge Iberica, a subsidiary of Bunge operating in the Iberian Peninsula. The transaction, valued at $300 million plus potential contingent payments of up to $40 million, is subject to customary closing conditions, including regulatory approvals.

Under the terms of the agreement, Bunge will continue to manage its three plants dedicated to oils and biofuels production in Bilbao, Barcelona, and Cartagena, strategically located near Repsol’s industrial complexes in the same regions. Furthermore, Bunge will retain its role as a significant producer of protein meals, vegetable oils, and distributor of agricultural commodities in Spain.

The partnership provides Repsol with enhanced access to a diverse range of low-carbon intensity feedstocks, facilitating the production of renewable fuels—a crucial step towards reducing emissions from various modes of transport, including cars, trucks, airplanes, and shipping vessels.

Repsol’s current renewable fuel production capacity of 1.1 million tons annually already mitigates CO2 emissions equivalent to more than 1.7 million electric vehicles. The company aims to amplify its output by up to 55 percent, reaching 1.7 million tons by 2027. To accelerate the adoption of renewable fuels, Repsol is expanding its service station network in Spain, integrating pumps that dispense 100 percent renewable fuel. Presently, over 120 service stations offer 100% renewable fuels, with plans to expand to 600 by year-end and 1,900 by 2027.

Additionally, Repsol is commissioning a 250,000-ton-per-year advanced biofuels plant in Cartagena, Spain—the first of its kind in the Iberian Peninsula. The company is also retrofitting another unit at its Puertollano industrial complex, with a capacity to produce 200,000 tons of renewable fuel annually.

Moreover, Repsol and Bunge intend to explore further avenues of collaboration and project development, focusing on expanding the availability of non-food lipidic feedstocks for the renewable fuels market.

Commenting on the agreement, Juan Abascal, executive managing director for Industrial Transformation and Circular Economy at Repsol, underscored its significance in solidifying Repsol’s leadership in renewable fuels within the Iberian Peninsula. Julio Garros, Co-President, Agribusiness at Bunge, expressed enthusiasm for the collaboration, highlighting its potential to drive innovation and contribute to the decarbonization of agricultural and oil supply chains.

For more information visit www.repsol.com