Repsol starts production at its first renewable fuels plant in Spain

Spanish oil-and-gas group Repsol SA (BME:REP) has started large-scale production of renewable fuels at a new plant within its refinery complex in Cartagena, southeastern Spain.

With EUR 250 million (USD 271m) invested in its construction, the new plant is the first of its kind on the Iberian Peninsula solely dedicated to producing 100% renewable fuels, Repsol said on Wednesday. The facility has the capacity to produce 250,000 tonnes per year of renewable diesel and sustainable aviation fuels (SAF) that can be used in all modes of transport. This represents 5% of the Cartagena refinery’s total diesel output and 17% of its kerosene production.

The renewable fuels will be made from 300,000 tonnes of processed organic waste per year, such as used cooking oil or agri-food waste. Repsol recently signed an agreement with Bunge Global SA (NYSE:BG) to acquire a 40% stake in Bunge Iberica’s oils and biofuels plants in Spain to ensure a steady supply of low carbon intensity feedstocks for renewable fuel production.

The group has also secured buyers of its renewable fuels through alliances with a number of companies across the transportation spectrum.

Going forward, Repsol plans to invest EUR 120 million in its second renewable fuels project, which will convert one unit at its refinery in Puertollano into a facility with a production capacity of 240,000 tonnes, and add a third plant in Spain before 2030.

The company says it aims to reach a total production capacity of renewable fuels, including renewable hydrogen and biomethane, of up to 2.7 million tonnes by 2030.

(EUR 1.0 = USD 1.084)

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