Repsol acquires 40% stake in Genia Bioenergy to foray into biomethane production

Repsol acquires 40% stake in Genia Bioenergy to foray into biomethane production

The operation includes 19 biomethane plants under development with a total capacity of 1.5TWh per year

  • By ICN Bureau | April 12, 2024

Repsol is entering the biomethane market with an agreement to take a 40% shareholding in Genia Bioenergy. This alliance allows Repsol to add significant human and technical capabilities to position itself early in this growing sector.

The agreement between Repsol and Genia Bioenergy includes 19 of its biomethane plants, which are under development. In addition, there are 11 other projects in an early stage of development. Repsol will purchase all the gas produced by these projects, which will also form a unique platform for creating agro-industrial ecosystems capable of boosting local economies and offering solutions for the valorization of their waste.

Genia Bioenergy is the only Spanish company that integrates the entire biogas and biomethane value chain, from the development of technologies and solutions to the engineering, construction and biological technical operation of the projects, applying technologies and innovation for the creation of new value models that allow the integration of all the players in the production chain and waste management for the production of renewable gases and resources in the long term.

Biomethane is considered strategic by the European Union - which has set itself an ambition to increase its production eightfold by 2030 compared to that recorded in 2022 - in its RePower EU program. The Spanish Gas Association (Sedigas) estimates that biomethane could account for almost half of Spain's natural gas consumption.

Juan Abascal, Executive Managing Director of Industrial Transformation and Circular Economy, Repsol, says: “This agreement is an important step forward in our strategy to take advantage of material that would otherwise be waste and transform it into fuels for the home, industry and mobility. Genia Bioenergy's experience, talent and assets will allow us to position ourselves as an integrated player in the entire biomethane value chain".

According to Gabriel Butler, CEO of Genia Bioenergy: "The development of biomethane plants advances Spain's goal of decarbonization of the economy, reduces its energy dependence on foreign countries and provides a sustainable response to European guidelines on waste management. It also means the creation of qualified jobs and the boosting of economic ecosystems around waste, especially in rural environments."

The alliance with Genia Bioenergy is part of Repsol's 2024-2027 strategy, which includes the transformation of its industrial complexes into multi-energy hubs capable of manufacturing products with a low carbon footprint.

This strategy includes significant milestones such as the start-up in Cartagena of the first plant on the Iberian Peninsula dedicated exclusively to the production of renewable fuels, with a capacity of 250,000 tons per year. This facility will be joined by a similar one in Puertollano which, when it comes into operation in 2025, will produce 200,000 tons per year.

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