Spanish energy company Repsol announced today the launch of its 2021-2025 Strategic Plan. According to the company, the new plan, which involves investments of more than €18 billion, is aimed at transforming, accelerating the energy transition and ensuring return and the highest value for shareholders. 30% of planned capital spend is earmarked specifically for low-carbon businesses.
The new plan also accelerates the company’s interim emissions reduction goals on the path to net zero 2050. The company now aims to cut its carbon intensity by 12% in 2025, 25% in 2030, and 50% in 2040, compared with prior objectives of 10%, 20%, and 40%, respectively.
Josu Jon Imaz, Repsol Chief Executive Officer, said:
“With this new Strategic Plan, which leverages our strengths, we are taking a significant step towards becoming a net zero emissions company, outlining a profitable and realistic roadmap that will allow us to grow, maximize value for our shareholders, and assure the future.”
Repsol’s new strategic plan reorganizes the company into four business areas, including a Low-carbon generation segment dedicated to renewable energy, conventional low-carbon generation and energy management. Repsol stated that the objective of the division is to become a global operator, with a generation capacity of 7.5 gigawatts (GW) by 2025 and 15 GW by 2030.
According to the company, Repsol will consider the incorporation of partners or investors to the Low-Carbon Generation business, or even a possible listing on the stock exchange with the goal of decisively accelerating the achievement of its objectives and guaranteeing a higher return from operations.
Repsol’s new strategic plan includes sustainability commitments beyond the low-carbon business. In its Industrial business, which includes Refining, Trading, Wholesale Gas, Biofuels, and Chemicals, the company is targeting reducing its emission by more than two million tons of CO2. The company also aims to transform its largest industrial sites, with a focus on the pillars of energy efficiency, the circular economy, renewable hydrogen, and the capture and use of CO2. Repsol stated that it intends to 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, and 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.
“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 manufacture of products with a low, neutral, or even a negative carbon footprint. We will promote circular economy initiatives, develop new energy solutions for our customers, and boost cutting-edge projects to reduce the industry’s carbon footprint.”