The financing signed today amounts to 400 million euros and is the first tranche of the total approved loan, which will be used to finance wind farms and photovoltaic plants with a total capacity of 1.1 GW. It contributes to the goal of the REPowerEU plan to increase energy security by reducing the European Union’s dependence on fossil fuel imports. The agreement also supports Repsol’s goal of reaching 20 GW installed by 2030 and net zero emissions by 2050.
The European Investment Bank (EIB) has granted a loan of 575 million euros to Repsol for the deployment and commissioning in Spain of wind farms and photovoltaic plants with a total capacity of 1.1 GW and which are expected to be operational before from the end of 2025.
The financed projects will make it possible to supply electricity equivalent to the average annual consumption of approximately 645,000 Spanish homes and will help to reduce the emission of greenhouse gases equivalent to more than 800,000 tons of CO2 per year. More than 35% of the installed capacity will be located in cohesion regions, regions with a per capita income below 75% of the European Union average.
The financing signed today is for 400 million euros and is the first tranche of the total approved loan of 575 million euros. It will contribute to accelerating the energy transition, security of energy supply, climate action and social and economic cohesion. The loan is part of the actions of the REPowerEU plan and will support energy security, reducing the European Union’s dependence on imports of fossil fuels.
“With this operation, the EIB continues to accelerate the energy transition in Spain by increasing renewable energy generation capacity and supporting Repsol’s decarbonisation strategy,” said EIB Vice-President Ricardo Mourinho Félix during the event. signing ceremony held in Madrid. “We are living through a critical moment in the energy transition accentuated by the impact of Russia’s unjustified aggression against Ukraine. Guaranteeing access to sustainable energy for all Europeans is essential for the strategic autonomy of the EU. The Public-private collaboration and the firm commitment of companies to decarbonization are more necessary today than ever”.
Repsol’s CEO, Josu Jon Imaz, explained: “This new financing is support for the company’s roadmap established in the 2021-2025 Strategic Plan, which contemplates reaching 6 GW of installed capacity in 2025 and 20 GW in 2030. The support of the EIB endorses our goal of zero net emissions in 2050 and is further demonstration that we are moving on the right path”.
EIB Vice President Ricardo Mourinho and Repsol CEO Josu Jon Imaz
EIB collaboration with Repsol and net zero emissions target
The EU Bank once again supports Repsol’s decarbonisation strategy after last December the financial institution granted a loan of 120 million euros to the company for the construction and operation of the first advanced biofuels production plant in Spain, located in Cartagena (Region of Murcia).
For its part, Repsol already has a current portfolio of renewable generation projects in operation of 1.9 GW worldwide, most of which are in Spain. In addition, the company has renewable assets in different stages of development in the United States, Chile, Portugal and Italy.
Repsol was the first company in its sector to commit to reaching net zero emissions by 2050 and is implementing an ambitious decarbonisation strategy, in line with the objectives established in the Paris Agreement and the United Nations Sustainable Development Goals. The company’s roadmap includes reduction targets for the Carbon Intensity Indicator of 15% in 2025, 28% in 2030 and 55% in 2040.
The EIB and energy security
In 2022, the EIB Group has committed financing worth more than €17 billion for the energy transition in Europe. In Spain, this priority action of the Climate Bank reached a record figure of 3,197 million euros in the same year, which was allocated to financing sustainable energy and natural resource projects (second EU country by volume of financing). . These investments are helping Europe overcome the crisis caused by the sudden cut in Russian gas supply resulting from Russia’s unjustified aggression against Ukraine.
In July 2023, the EIB Board of Directors decided to increase the funds allocated to REPowerEU projects by up to 45 billion euros, the plan designed to end Europe’s dependence on imported fossil fuels. This additional financing comes on top of the already significant EIB support for investments in sustainable energy, and represents an increase of 50% compared to the original package of €30 billion allocated to REPowerEU announced in October 2022.
The EIB has also decided to broaden the range of eligible sectors to boost financing for EU manufacturing industry in strategic, net-zero carbon cutting edge technologies, as well as the extraction, processing and recycling of critical raw materials.