April 12, 2024 [Storage Terminal magazine]- Repsol ventures into the biomethane market through a deal to acquire a 40 percent stake in Genia Bioenergy, aiming to capitalise on the sector’s burgeoning potential. This partnership enables Repsol to tap into considerable expertise and technical capabilities, positioning itself as an early entrant in this expanding domain.
Biomethane holds strategic significance for the European Union, which aims to ramp up its production eightfold by 2030 under the RePower EU initiative. In Spain, biomethane could potentially satisfy nearly half of the country’s natural gas demand, according to estimates by the Spanish Gas Association.
The agreement encompasses 19 biomethane plants currently under development by Genia Bioenergy, along with 11 additional projects in the early stages. Repsol commits to purchasing all gas produced by these ventures, fostering agro-industrial ecosystems that stimulate local economies and offer waste valorization solutions.
Genia Bioenergy stands out as Spain’s sole company integrating the entire biogas and biomethane value chain, from technology development to project engineering, construction, and operational management. Biomethane, derived from organic matter like agricultural and livestock waste, not only serves as a renewable substitute for natural gas but also finds application in renewable fuels, green hydrogen production, and chemical manufacturing, contributing to greenhouse gas reduction.
The burgeoning biomethane industry in Spain and Portugal addresses the challenge of organic waste management while generating economic activity, particularly in rural areas. For Repsol’s executive managing director of industrial transformation and circular economy, Juan Abascal, this alliance represents a crucial step towards transforming waste into valuable fuels, aligning with the company’s circular economy strategy.
Gabriel Butler, CEO of Genia Bioenergy, underscores the role of biomethane plants in Spain’s decarbonisation efforts, energy independence, and compliance with European waste management directives, envisioning job creation and economic growth, especially in rural settings.
Repsol’s collaboration with Genia Bioenergy aligns with its 2024–2027 strategy, focusing on industrial complexes’ transformation into multi-energy hubs producing low-carbon products. The company’s commitment to renewable energy extends to initiatives like the Cartagena plant, set to become the Iberian Peninsula’s first dedicated renewable fuel facility, and investments in wind and solar energy projects worldwide.
Since 2019, Repsol has pledged to achieve carbon neutrality by 2050 in line with the Paris agreement, demonstrating its proactive approach to environmental sustainability and energy transition.
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