Repsol to Invest 800 Million Euros in Renewable Methanol Production

Repsol’s Board of Directors approved the investment in Ecoplant, a pioneering European project that aims to transform municipal waste into renewable fuels and circular products, adding to the solution to reduce CO2 emissions in the transport sector while promoting a circular economy.

The plant, located in Tarragona, is expected to receive an investment of more than 800 million euros and will be the first in Europe to produce renewable and circular methanol from waste through gasification, the most advanced waste valorization process in the world. This cutting-edge technology, developed by Enerkem, a technology company in which Repsol collaborates, gives a second life to waste that would otherwise have been landfilled or incinerated.

The new plant will be able to process up to 400,000 tons of municipal solid waste per year and transform it into 240,000 tons of renewable fuels and circular products. Renewable methanol comes from organic waste, while circular products come from non-organic waste, such as non-recyclable plastics.

The plant, scheduled to be operational in 2029, will create 340 direct, indirect and induced jobs, and around 2,800 jobs during the construction phase. Ecoplant will be integrated into Repsol's industrial complex in Tarragona to take advantage of existing infrastructure and accelerate the transformation of the center into a multi-energy hub that will continue to produce social necessities such as renewable fuels and circular materials. This investment is a clear demonstration of Repsol's commitment to maintaining industrial employment in Spain and continuing to create wealth for the surrounding region.

Ecoplanta was selected from more than 300 projects by the European Union to receive funding under the Innovation Fund program for its significant emission reduction potential and innovativeness, as well as being unique in Europe. According to the European Commission, Ecoplanta will reduce greenhouse gas (GHG) emissions equivalent to 3.4 million tons of CO2 in its first ten years of operation.

Repsol's goal is to lead the production of renewable fuels in the Iberian Peninsula. The company aims to produce 1.5 to 1.7 million tons per year in 2027 and 2.7 million tons per year by 2030 (including renewable hydrogen and biomethane). The company also plans to produce 105,000 tonnes of recycled products per year by 2027 and 200,000 tonnes per year by 2030.