Repsol Secures Acquisition of 40% Stake in Bunge's Spanish Biodiesel Assets

Repsol and Bunge have forged a groundbreaking partnership aimed at capitalizing on emerging opportunities to address the escalating demand for feedstocks with lower carbon intensity for renewable fuel production. This collaboration, a pioneering initiative in Europe, is poised to expedite the scaling up of renewable fuel production mandated by the European Union.

In this strategic alliance, Repsol, a leading multi-energy company, secures a 40% stake in three industrial facilities operated by Bunge Iberica, a subsidiary of Bunge operating in the Iberian Peninsula. The acquisition, valued at $300 million, with an additional $40 million contingent upon certain milestones, marks a significant milestone in advancing their shared objectives. Completion of the transaction is contingent upon customary closing conditions, including regulatory approvals.

Under the terms of the agreement, Bunge will retain operational control over its three plants dedicated to oils and biofuels production, located in Bilbao, Barcelona, and Cartagena, strategically situated near Repsol's industrial complexes in the same regions. Furthermore, Bunge will maintain its vital role as a producer of protein meals, vegetable oils, and distributor of agricultural commodities in Spain.

Through this partnership, Repsol gains broader access to a diverse array of low-carbon intensity feedstocks crucial for renewable fuel production, thereby facilitating immediate progress towards curbing emissions from various modes of transport, including automobiles, trucks, aircraft, and maritime vessels. Repsol's existing renewable fuel production capacity of 1.1 million tons annually already mitigates CO2 emissions equivalent to over 1.7 million electric vehicles. The company aims to augment its output by up to 55%, reaching 1.7 million tons by 2027.

To bolster the adoption of renewable fuels, Repsol is accelerating the integration of renewable fuel pumps across its extensive service station network, the largest in Spain. Presently, over 120 stations offer 100% renewable fuels, with plans to expand to 600 stations by year-end and 1,900 by 2027. Furthermore, Repsol is commissioning a state-of-the-art 250,000-ton-per-year advanced biofuels plant in Cartagena, Spain, the first of its kind in the Iberian Peninsula. Additionally, a retrofitting initiative is underway at another unit within its Puertollano industrial complex to facilitate the production of 200,000 tons of renewable fuel annually.

In addition to enhancing their collaboration in renewable fuel production, Repsol and Bunge are exploring avenues for further cooperation and project development aimed at bolstering the availability of non-food lipidic feedstocks for the renewable fuels market.

Juan Abascal, Executive Managing Director for Industrial Transformation and Circular Economy at Repsol, underscored the significance of this agreement in solidifying Repsol's leadership in renewable fuels within the Iberian Peninsula. He emphasized the company's unwavering commitment to delivering effective solutions to mitigate CO2 emissions from transport.

Julio Garros, Co-President, Agribusiness at Bunge, expressed enthusiasm for this milestone, highlighting its alignment with Bunge's dedication to fostering alternative pathways for decarbonizing agricultural and oil supply chains. He emphasized the collective expertise and global connectivity of both companies in the agri-food sector, poised to unlock broader opportunities in the renewable energy domain.