The Spaniard oil giant Repsol is seeking funds in the European Union to support projects that shift away from the historic company’s portfolio; after the pandemic hit hard the global economy and low carbon efforts expanded in a global scale.
Firstly, Spain and Italy have called out for companies to present and propose projects that would help the countries’ economies recover after the pandemic, and to shape in a low-carbon economy. They did so with a 750-billion-euro recovery package.
Secondly, Repsol responded that request with 30 projects, for which the company calculates a total investment of $5,96 billion euros. Such projects are mainly concentrated in hydropower, green hydrogen production, as well as biofuels.
Thirdly, for the biofuels project, Repsol agreed with oil giant Saudi Aramco to build one in northern Spain. It will produce synthetic fuels for vehicles, trucks and also airplanes, using carbon dioxide from a nearby carbon capture system from a refinery.
Moreover, the intention is to expand the facility into the green hydrogen production; as its name implies, from renewable energy sources. Also, a second facility for synthetic fuels is planned for southern Spain. Repsol intends to start production of both in 2023.
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Repsol and its Strategic Plan 2021-2025
In fact, according to Reuters, in a recent meeting with stakeholders, Repsol’s CEO, Josu Jon Imaz, said that refineries in central and eastern Spain are already transformed and getting ready to produce “sustainable biofuels.”
On the other hand, the company plans also to add 1 gigawatt of capacity to a hydroelectric plant in the northern Cantabria. According to Repsol’s estimations, the addition to the Aguayo hydroelectric could cost $700 million euros.
Indeed, this Monday, March 22, the company’s president Antonio Brufau, advanced some news upon its Strategic Plan 2021-2025, in which the company draws its upcoming efforts in energy transition. The whole plan is due for presentation on November, 26.
Finally, the company calculates an investment of $1,400 million euros for the next five years. “Our 2021–2025 plan makes our progress towards decarbonization and also zero net emissions; compatible with presenting a profitable and attractive value investment proposition; with also, a proven commitment to shareholder remuneration,” Imaz said on a statement.