In a recent address, Antonio Brufau, the president of Repsol, underscored a critical point for Europe’s energy future. He argued that without clear legal and financial stability within Spain, a substantial investment plan worth 1.5 billion euros aimed at advancing renewable hydrogen would be at risk of migrating to neighboring regions such as Portugal or France. The message was delivered during a public session organized by the Repsol Foundation in collaboration with the University of Navarra Engineering School, Tecnun, where Brufau detailed the conditions attached to the €1,500 million investment. He stressed that the investment hinges on a stable and predictable environment that provides legal certainty and solid financial guarantees, creating an attractive framework for long term projects. This stance reflects a broader concern among industry leaders about policy consistency and the impact of fiscal measures on investment decisions that shape decarbonisation efforts across Europe. He affirmed that Spain must offer conditions that are genuinely stable to keep strategic energy projects home and prevent a shift of capital and innovation to other European economies. The emphasis on stability, Brufau explained, is not a mere preference but a prerequisite for investors who require consistent rules and dependable returns before committing to large-scale, capital-intensive ventures. Each investment decision, according to the executive, is anchored in a cost-benefit analysis that weighs profitability, risk, and the strategic value of maintaining a domestic hub for energy transition activities. The potential relocation of projects to Portugal or France would be a direct consequence of perceived instability, which Brufau argued would undermine Spain’s ability to lead in renewable hydrogen technologies and other decarbonisation initiatives.
During the dialogue, Brufau also touched on the broader policy environment and the political context surrounding energy taxation. He referenced the government’s approach under the current PSOE and Sumar administration, which has signaled an intent to broaden the special tax on energy companies and banking. He noted that any decision to expand such levies would be weighed against the need to maintain a competitive landscape that supports investment. Repsol’s leadership, including CEO Josu Jon Imaz, has consistently stated that before finalising investments in Spain, conditions must be both stable and attractive enough to guarantee project profitability. In Brufau’s view, if these conditions fail to meet that threshold, the company would consider alternative locations that offer a more resilient economic environment for energy projects. The current tax regime—imposed at 1.2 percent of turnover for companies with annual revenues above 1,000 million euros and excluding regulated activities, as well as operations outside Spain and non-peninsular regions—illustrates the kind of fiscal signal that can tip investment decisions. Brufau underscored that the presence of such a tax does not exist in isolation; it must be weighed against regional competitiveness and the long-term strategic value of maintaining energy independence and decarbonisation progress across Europe. He cautioned that a persistent mismatch between tax policy and the capital needs of modern energy projects could push critical investments beyond national borders, effectively fragmenting Europe’s single energy market.
From Brufau’s perspective, if Spain fails to offer an environment where hydrogen and other clean energy initiatives can be produced locally, the company’s strategic choice would lean toward establishing operations in neighboring countries where the conditions are more favorable. He described this as a practical outcome of a misaligned fiscal and regulatory framework, rather than a theoretical worry. The overarching message was clear: the decision to relocate would be driven by the imperative to safeguard profitability and ensure timely return on investment, particularly for projects designed to support decarbonisation targets and energy security. The executive also emphasized that these projects require maturity and a long-term vision, stating they must be developed within a framework of policy stability and financial attractiveness. In this context, attractiveness meant competitiveness relative to nearby regions, not just a favorable tax rate. The conversation highlighted the delicate balance between national policy choices and the needs of energy companies as they navigate the transition to lower emissions. Brufau asserted that meaningful progress toward decarbonisation cannot be achieved through abrupt regulatory shifts or fragmented rules that complicate investment planning. Rather, he called for a cohesive, streamlined regulatory approach that preserves the integrity of the single market while allowing nations to tailor incentives that encourage investment without undermining cross-border integration.
Beyond the tax discussion, Brufau reinforced Repsol’s commitment to a fair and reliable energy transition that supports Europe’s strategic autonomy and resilience in supply. He argued that security of supply, universal energy access, and decarbonisation should be backed by sensible incentives rather than prohibitions, and that these incentives must be designed to simplify regulation rather than create new layers of bureaucracy. In his view, a predictable rule set is essential; without it, companies will hesitate to deploy the capital needed to accelerate the energy transition. He reiterated that the present policy environment requires clarity, coordination, and a forward-looking stance from European and national authorities. The aim is to ensure that industry investment can proceed smoothly, delivering tangible progress toward decarbonisation goals while maintaining competitive energy prices and reliable distribution networks. The underlying premise was straightforward: clear conditions help investors plan multi-year projects, and that stability is the backbone of a robust energy transition strategy.