Renta 4 | Repsol has obtained a 120 million euros loan from the European Investment Bank, which will be earmarked for financing the company’s biofuels plant in Cartagena, Murcia. The investment for the C43 project would be180 million euros, according to Repsol. It has already announced it would carry out investments aimed at converting the plant into the first advanced biofuels plant with low Co2 emissions. The C43 project will have the capacity to process 300.000 tonnes of waste to produce 250.000 tonnes of biofuels like hidrodiesel, biojet, biondiesel and biopropane. To do that, the company will use waste like used cooking oil, amongst other things. The project is expected to be operational in 2023.
The EIB will also earmark part of the financing for programmes for investigating new advanced biofuels technologies in the Repsol Technology Lab which has its HQ in Madrid.
Valuation: Positive impact. With the funds granted by the EIB for the C43 project, Repsol obtains approximately 67% of the investment requirements. The EIB is acknowledging the importance of the Spanish oil and gas group’s project when it comes to continuing with the transition towards zero emissions mobility.
We reiterate our OVERWEIGHT stance, with a target price of 18,9 euros/share.
