Global agribusiness giant Bunge has teamed up with Spanish multi-energy company Repsol on a renewable fuel project in Spain to develop lower carbon intensity feedstocks.

As part of the agreement, Repsol would acquire 40% of three industrial facilities that were part of Bunge Iberica – one of Bunge’s subsidiaries in the Iberian Peninsula – for a total of US$300M and up to US$40M in contingent payments, the companies said on 26 March.

Under the agreement, which is subject to closing conditions and regulatory approvals, Bunge said it would continue to operate its three plants dedicated to the production of oils and biofuels in Bilbao, Barcelona, and Cartagena, which are all close to Repsol’s industrial complexes located in the same regions.

Bunge would also continue to be a key producer of protein meals and vegetable oils and a distributor of agricultural commodities in Spain.

Through the partnership, Repsol’s access to a wide portfolio of low-carbon intensity feedstocks to produce renewable fuels would increase.

“Together, thanks to our companies’ in-depth expertise in the agri-food sector and global connectivity for renewable feedstocks, we aim to unlock wider opportunities in the renewable energy space,” Bunge co-president, Agribusiness, Julio Garros, said.

Repsol said it expected to increase its renewable fuel output by up to 55% from 1.1M tonnes/year to 1.7M tonnes/year in 2027.

In addition, Repsol said it would be increasing the rollout of renewable fuels at its service station network – the biggest in Spain – by adding 100% renewable fuel pumps.

Currently, the company has more than 120 service stations with 100% renewable fuels but aims to reach 600 by the end of the year and 1,900 by 2027.

Repsol said production would be starting up at its 250,000 tonnes/year advanced biofuels plant in Cartagena, Spain and it was also retrofitting another unit at its industrial complex in Puertollano, Spain, with a capacity to produce 200,000 tonnes/year of renewable fuel.

The companies said they also planned to explore other areas of cooperation and project development to increase the potential availability of non-food lipidic feedstocks for the renewable fuels market.