Repsol Enters Biomethane Market: Acquires 40% Stake in Genia Bioenergy

by Admin
Repsol Stakes in Genia Bioenergy

Repsol is stepping into the biomethane market through an agreement to acquire a 40% stake in Genia Bioenergy. This partnership enables Repsol to enhance its human and technical resources, positioning itself early in this burgeoning sector.

Biomethane holds strategic importance for the European Union, which aims to ramp up its production eightfold by 2030 compared to 2022 levels, as outlined in its RePower EU program. The Spanish Gas Association (Sedigas) projects biomethane to potentially constitute nearly half of Spain’s natural gas consumption.

The agreement between Repsol and Genia Bioenergy encompasses 19 biomethane plants currently under development, along with 11 additional projects in early stages. Repsol will procure all gas output from these projects, fostering the creation of agro-industrial ecosystems. These ecosystems are poised to invigorate local economies and offer waste valorization solutions.

Genia Bioenergy stands as Spain’s sole company integrating the entire biogas and biomethane value chain. It spearheads the development of technologies, engineering, construction, and operational aspects of projects, fostering innovation to establish new value paradigms. This approach facilitates the integration of all stakeholders in the production chain and fosters long-term renewable gas and resource production.

Biomethane, derived from organic matter like agricultural and livestock waste, serves as a renewable alternative to natural gas. Apart from substituting conventional gas, it finds applications in renewable fuel production, green hydrogen generation, chemical manufacturing, and greenhouse gas reduction.

The burgeoning biomethane industry in Spain and Portugal addresses the challenge of organic waste, mitigating emissions that would otherwise arise from landfill degradation. Moreover, it presents opportunities for economic activity in rural regions.

For Repsol’s Executive Managing Director of Industrial Transformation and Circular Economy, Juan Abascal, “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.”

Repsol’s collaboration with Genia Bioenergy forms part of its 2024-2027 strategy, aiming to transform its industrial complexes into multi-energy hubs with low carbon footprint products. Key milestones include inaugurating the first renewable fuels plant in Cartagena, followed by a similar facility in Puertollano in 2025.

In 2023, Repsol became the first company in the Iberian Peninsula to offer customers 100% renewable fuel. It plans to expand this offering to 600 service stations by the end of 2024. Additionally, Repsol has invested in Acteco, a plastics recycling company, and is exploring low-carbon opportunities like CO2 capture, renewable hydrogen storage, and renewable electricity generation.

Committed to carbon neutrality by 2050, Repsol continues to spearhead initiatives in alignment with the Paris Agreement, underscoring its dedication to sustainable energy transition.

Source Repsol