Repsol intensifies its commitment to biofuels. The company has closed a deal with the American group Bunge to acquire a 40% stake in three European plants for a fixed price of 300 million dollars, roughly 276 million euros, with the potential to rise by as much as 40 million dollars (about 37 million euros) if certain conditions are met.
With this alliance, the Spanish group secures strategic access to the raw materials needed to reach its target of producing up to 1.7 million tonnes of renewable fuels within four years. This occurs through its participation in three facilities dedicated to producing oils and biofuels in Barcelona, Bilbao, and Cartagena, located near Repsol’s industrial complexes. Repsol and Bunge will explore additional co‑operation opportunities in renewable-fuel production, including fuels derived from agricultural or urban waste through a circular economy approach.
The current production capacity of Repsol stands at 1.1 million tonnes of renewable fuels per year, a level that corresponds to CO2-emission savings comparable to more than 1.7 million electric vehicles. The company plans to boost output by as much as 55%, reaching 1.7 million tonnes by 2027.
Repsol is also accelerating the rollout of renewable fuels within its service station network, which is the largest in Spain. The expansion includes the introduction of 100% renewable fuel dispensers. The network already operates over 120 service stations offering renewable fuels and aims to reach 600 by year-end and 1,900 by 2027.
Choque con Ribera
The billion-euro alliance comes amid ongoing friction with the government after comments by Teresa Ribera, the vice-president and minister for Ecological Transition. Repsol defends its multi‑energy strategy and a technology-neutral approach to the energy transition, arguing for the use of all energy sources to decarbonize, not solely electric generation, and to safeguard heavy industry that cannot operate on electricity alone.
“The alternative is to shut down refineries. Minister Ribera, do you want us to close refineries that provide jobs, directly and indirectly, for around 28,000 people in Spain?” declared Josu Jon Imaz, Repsol’s chief executive, at energy and economy meetings. “We resist the notion that industry is a problem. We will fight to keep transforming and improving our refineries to reduce their CO2 footprint. I hope for the minister’s closeness, support, and collaboration on this path.”
Ribera responded that closing refineries is not a realistic option at this stage, but suggested that by 2040 or 2050 the economy should be prepared for a move away from fossil fuels. She also cautioned that synthetic fuels (not biofuels, but fuels produced by combining hydrogen with CO2) may not be the solution most citizens want and could be expensive, serving only limited segments.
The lawsuit filed by Iberdrola against Repsol for “misleading advertising” and “unfair competition,” amid accusations of greenwashing, has further heated tensions with Ribera. After the lawsuit became public, the vice president appeared to side with Iberdrola and signaled support for the legal challenge. She later walked back some of her comments, describing herself as “absolutely neutral,” while emphasizing the need for a green agenda that avoids confusing users with labels that do not reflect reality.
In recent months, clashes between Repsol and the government have persisted. Ribera accused Repsol’s chief executive of a discourse that could be seen as “denialist” and “delayed” on decarbonization, particularly after his remarks at the Davos forum questioning the European Union’s approach and arguing for a technology-inclusive path to decarbonization that does not rely solely on electrification.
Repsol has also threatened to pause investments of around 3 billion euros in Spain due to regulatory and fiscal moves by the government, including the application of a new tax on large energy groups that taxes their sales and estimated profits. Repsol is the largest contributor to this new levy, having paid 443 million the previous year and expecting about 350 million this year.