Bunge secures raw materials for three Repsol plants in Spain

The company is concluding a supply agreement with Repsol to produce renewable fuels

Vegetable oils and derivatives producer Bunge has reached an agreement with Repsol to guarantee the supply of low carbon-intensive raw materials to the Spanish company in order to produce renewable fuels. Repsol will in this way be able to increase its production to reach the 1.7-million-tonne capacity it has set as a target for 2027.

The agreement is also in line with the US company's long-term strategy to generate alternatives for decarbonising the agricultural and oil supply chains. This is the first alliance of its kind in the European Union calling on the industry to increase production of such fuels.

Oil and biofuel production
The first step will be the purchase by Repsol of 40% of the plants that Bunge Ibérica has in Bilbao (Vizcaya), Barcelona and Cartagena (Murcia), close to the energy company's industrial complexes. These plants, which will continue to be operated by the US group's subsidiary, are focussed on producing oils and biofuels. The transaction has been set at $300 million, which could be supplemented by up to an additional $40 million in contingent payments.

Repsol's access to a guaranteed portfolio of low-carbon feedstocks will boost its current production of 1.1 million tonnes of renewable fuels per year to 55%, reaching 1.7 million tonnes by 2027.

Renewable fuel pumps
Thanks to this operation, Repsol's service station network will be able to maintain its plan to deploy 100% renewable fuel pumps. 120 service stations already have one of these pumps at present, and the aim is to reach 600 by the end of this year and 1,900 by 2027.

Repsol's advanced biofuels plant in Cartagena (Murcia), the first on the Iberian Peninsula, will be closer to its goal of producing 250,000 tonnes per year. The Puertollano (Ciudad Real) industrial complex will also have a plentiful supply when the transformation of a unit that will produce 200,000 tonnes of renewable fuel per year is completed.

Alternative decarbonisation routes
Bunge Co-President of Agribusiness Julio Garros described the partnership as “an exciting step” that “supports our commitment to create alternative routes for decarbonising the agricultural and oil supply chains in our industry. Thanks to our extensive specialisation in the agri-food industry and the global connectivity of our companies with regard to renewable raw materials, together, we aim to seize further opportunities in the field of renewable energy.”

Repsol's Executive Director of Industrial Transformation and Circular Economy, Juan Abascal, emphasised that the agreement consolidates the company's leadership “in renewable fuels on the Iberian Peninsula”, “It is clear evidence of the steady progress we are making on our ambitious roadmap to provide society with solutions to reduce net CO2 emissions from transport as quickly and efficiently as possible.”

Photo: Repsol