The Spanish company Repsol has reached an agreement with Bunge to collaborate in the development of new opportunities “that help satisfy the growing demand for raw materials with lower carbon intensity to produce renewable fuels.” This alliance, the first of its kind in Europe, will serve to “accelerate the increase in production required by the European Union of these fuels”, as reported by the company through a statement sent to the National Securities Market Commission (CNMV). ). ).
The announcement came amid controversy over the words of the Minister of Ecological Transition, Teresa Ribera, who criticized the commitment to this type of synthetic fuels. Through this strategic agreement, the multi-energy company purchases 40% of three industrial facilities that are part of Bunge Ibérica, one of Bunge’s subsidiaries in the Iberian Peninsula, for a total import of 300 million dollars and up to 40 million additional dollars in contingent payments. The transaction is subject to customary closing conditions, including regulatory approvals.
The agreement includes three plants operated by Bunge dedicated to the production of oils and biofuels in Bilbao, Barcelona and Cartagena, close to Repsol industrial complexes. Bunge will continue to be a key producer and supplier of protein flours, vegetable oils, oilseeds and cereals in Spain. Through this alliance, Repsol increases its access to a broad portfolio of low-carbon intensity raw materials to produce renewable fuels, which represent an immediate route to accelerate the reduction of emissions from transportation, including cars, trucks, planes and ships.
Growing demand for raw materials
For this reason, Repsol and Bunge have agreed to collaborate in the development of new opportunities that help satisfy the growing demand for raw materials with lower carbon intensity to produce renewable fuels.
This alliance, the first of its kind in Europe, will help accelerate the increase in production required by the European Union (EU) of these fuels, while Bunge will continue to be a key producer and supplier of protein meals, vegetable oils, oilseeds and Cereals in Spain.
Thus, Repsol is carrying out the commissioning of its advanced biofuels plant of 250,000 tons per year in Cartagena, which is the first on the Iberian Peninsula, while highlighting that it is transforming another unit in its industrial complex of Puertollano (Ciudad Real) with the capacity to produce 200,000 tons of renewable fuel annually.
Both companies plan to explore other areas of cooperation and project development to increase the potential availability of non-food oils and fats for the renewable fuel market.
