Repsol to spend €5.5 billion in renewable energy until 2025
Repsol unveiled its 2021-2025 Strategic Plan which will transform the company in the following years.
Over the next four years Spanish oil company Repsol will invest €18.3 billion as it follows its roadmap in the energy transition. The strategic plan will dedicate €5.5 billion (30%) to low-carbon spending and renewable energy.
The company will decarbonize its asset base and implement a new operating model that will extract value from its current strengths as well as add new pillars to support the company’s future such as the Customer and Low-Carbon Generation Businesses. By 2030, Repsol will be a company that is renewed, more sustainable, and more focused, according to the energy giant.
Repsol will evolve its organization by deploying four business areas – Upstream, Industrial, Customer, and Low-Carbon Generation. The latter will have a new business model contemplating the incorporation of partners or investors.
“Our strategy is based on a multi-energy offering that combines all the technologies for decarbonization of energy. We will be more efficient and increase our renewable energy objectives as well as our manufac-ture of products with a low, neutral, or even a negative carbon foot-print. We will promote circular economy initiatives, develop new ener-gy solutions for our customers, and boost cutting-edge projects to re-duce the industry’s carbon footprint,” said Josu Jon Imaz, Repsol Chief Executive Officer.
The plan to provide a positive impact of the digitalization projects that already in 2022 will surpass €800 million a year compared with the start of the digitalization program in 2018.
In the new business model, Repsol will create a Customer Unit to globally satisfy all energy and mobility needs of its customers, currently more than 24 million. The unit will bring together the existing Mobility, LPG, Electric Mobility, Power and Gas Commercialization, Energy Solutions, and Lubricants businesses. This new branch will become the leading multi-energy supplier and the new transversal loyalty program will grow from two million digital customers to eight million by 2025.
Transformation of the Industrial business
Repsol’s seven large industrial sites in Spain, Portugal, and Peru will continue their transformation to become multi-energy hubs. They will be able to generate products with a low, zero, or even a negative carbon footprint and to promote new business models based on digitalization and technology.
The company will become a leader in sustainable biofuels, with a production capacity of 1.3 million tons by 2025 and of more than two million by 2030. The company already has several ongoing projects along these lines at its refineries.
Renewable hydrogen will be another important vector for the decarbonization of the industry. The applications range from its use as a raw material to produce synthetic fuels to the storage of renewable energy. Repsol has the ambition to be a leader in renewable hydrogen in the Iberian Peninsula by reaching a production of the equivalent of 400 MW by 2025 and with the ambition of exceeding 1.2 GW in 2030. The capture and use of CO2 will also be key to this transformation process, thanks to projects like the one developed at Petronor in Bilbao, the only refinery in the Iberian Peninsula and one of few in Europe that has implemented this kind of processes.
Repsol’s strategic plan is oriented toward the objective of zero net emissions by 2050. The Strategic Plan 2021-2025 outlines new and more ambitious emissions reduction targets. It aims at a reduction of the carbon intensity by 12% in 2025, 25% in 2030, and 50% in 2040.
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