The Spanish oil and gas group has announced an agreement with Saudi state oil company Aramco for the development of synthetic fuels. The agreement begins with an industrial conversion project in the Petronor factory (Basque Country) and would later be transferred to the rest of Repsol’s facilities globally. Repsol will invest 80M euros to modify some of Petronor’s production processes via two projects. The first will be a “zero emission” synthetic fuel plant. The facility will be operational in four years. The second project will require an investment of 20M euros and will be a gas generation plant from urban waste.
The Petronor group is well established in the Basque Country and the project involves the Muskiz refinery, near Bilbao.
Synthetic fuels, unlike fossil fuels, are generated through green hydrogen which in turn is generated by renewable energy through the combination of CO2 and water.
In the opinion of Bankinter’s analysis team, the news once again reflects Repsol’s determination to become a multi-energy company with an increasing focus on renewable energies.
“That has been its goal in recent years and, despite the COVID-19 crisis, it continues to invest in this area. It is also good news that it is doing so in collaboration with Aramco, the world’s leading oil company, as an industrial and technological partner”.