EIB agrees landmark €120m loan for Repsol SAF plant
The European Investment Bank (EIB) has lent €120m to Spanish energy company Repsol for a new refinery which will produce Sustainable Aviation Fuel (SAF).
Repsol will use the loan to build and operate a biofuels production plant in Cartagena, Murcia, Spain. It already has a facility there. It will start by refining used cooking oils and other food waste. The EIB loan will also be used to support research programs at Repsol’s Technology Lab in Madrid.
“The EIB is committed to financing green transformation, the use of alternative energy sources and innovative research programs across Europe,” said Ricardo Mourinho Félix, VP, EIB. “The EIB loan contributes to Repsol’s strategy to transform its business model and to its decarbonization strategy. We are pleased to be collaborating with companies such as Repsol which are taking steps towards decarbonizing business activity and strengthening resilience to climate change.”
In October 2022 the EIB’s board said that it would increase lending to clean energy to lower Europe’s dependency on Russian fuel imports. It plans to invest an extra €30bn over the next five years. It has a target of encouraging €1 trillion in climate financing before 2030.
Repsol plans to process 300,000 tons per annum of lipidic residues for the production of up to 250,000 tons each year of biofuels.
“We are proud to be the first company in the sector to obtain this type of financing, which is a result of our commitment to execute ground-breaking projects in support of a rapid, effective and just energy transition,” said Antonio Lorenzo, CFO, Repsol. The EIB has financed 10 other loans for Repsol in the past.
Repsol is committed to zero net emissions by 2050.