Repsol invests $300m into Bunge for biofuel feedstock

Oilseed producer and supplier of specialty plant-based oils and fats Bunge announced that it has sold 40% stake in three industrial facilities at Bunge Iberica, Bunge’s subsidiary in Iberian Peninsula, for $300m to Repsol.

“This is an exciting step for Bunge in Spain and supports our commitment to create alternative paths towards the decarbonisation of agricultural and oil supply chains in our industry,” said Julio Garros, co-President, Agribusiness, Bunge.

This alliance, first of its kind in Europe, will help to accelerate the ramp-up of production of renewable fuels mandated by the European Union.

Under the agreement, Bunge will continue to operate its three plants dedicated to the production of oils and biofuels in Bilbao, Barcelona, and Cartagena, near Repsol’s industrial complexes located in the same regions.

The partnership will help Repsol increase its access to a wide portfolio of low-carbon intensity feedstocks to produce renewable fuels.

“With this agreement, Repsol has secured its leadership in renewable fuels in the Iberian Peninsula. It is clear proof of the steadfast progress we are making in our ambitious roadmap to provide society with solutions to reduce the net emissions of CO2 from transport as quickly and efficiently as possible,” said Juan Abascal, executive managing director for industrial transformation and circular economy, Repsol.

Repsol currently produces 1.1m tons of renewable fuels (including SAF) but plans to increase its output by up to 55%, reaching 1.7m tons in 2027.

Repsol is starting up its 250,000 tons-a-year advanced biofuels plant in Cartagena, Spain. The company is retrofitting another unit at its industrial complex in Puertollano, Spain, with a capacity to produce 200,000 tons of renewable fuel per year.

Both of the projects will produce SAF to meet demand from airlines operating in Europe as EU mandates come into force.