For readers who might not be acquainted with what Repsol is doing within sustainability, especially in the mobility sector, could you give us an overview of your main objectives?
I would start by saying that Repsol was the first company in the sector to commit to net zero emissions by 2050, a goal we fully support and are actively working towards. However, we believe that decarbonization should not be equated solely with electrification. While electrification is one pathway to achieving net zero emissions, relying exclusively on it will not be sufficient. This is a broader societal challenge, not just for Repsol, and we advocate for a technologically neutral approach. By employing a variety of complementary technologies, we can better ensure that we reach our net zero goals.
In our mobility business, specifically concerning service stations, we provide increasingly efficient traditional fuels, integrate new fuels into our offerings, and support a network of gas and renewable fuel stations. For example, we have around 500 service stations with LPG in Spain and Portugal, and approximately 20 stations for natural gas, primarily for heavy-duty transportation. We are significantly investing in renewable fuels, which can achieve net zero emissions immediately using existing infrastructure and vehicles. Currently, we have over 400 service stations offering renewable fuels and aim to increase this to more than 600 by the end of the year, with a strategic goal of reaching 2,000 by 2027. We also support e-mobility, with a network of 2,300 charging points, although some are not yet operational due to regulatory delays.
You mentioned that electrification is only part of the solution. Can you elaborate on why you see potential challenges with relying solely on electrification and the importance of other technologies?
We believe that relying solely on electrification poses several challenges. Electrification has inherent issues, such as the significant carbon emissions associated with manufacturing EV batteries, range anxiety, and the need for a widespread charging infrastructure. These challenges could hinder our ability to meet the net zero emissions goal by 2050 if we do not also explore other viable technologies.
It's crucial to be efficient and realistic. The deployment speed of EV infrastructure and the transformation required across the entire system are significant hurdles. Hence, it is logical to invest in and implement multiple technologies simultaneously. For example, while sustainable aviation fuel (SAF) is a solution for aviation, renewable diesel (HVO,hydrotreated vegetable oil) is equally valid for road mobility. Being technologically neutral and supporting a variety of solutions is not only coherent but also essential for achieving our sustainability targets.
Repsol has signed a memorandum of understanding with Ryanair to supply sustainable aviation fuel (SAF). How will this contribute to reducing aviation emissions?
Our collaboration with Ryanair, as well as with Iberia and other commercial and cargo companies, is part of a broader commitment to sustainable aviation fuel (SAF). Starting in 2025, companies will need to meet certain SAF commitments in Europe, but many are already exceeding these requirements as part of their ESG goals.
This year, we inaugurated our new renewable fuels plant in Cartagena, the first of its kind on the Iberian Peninsula. This facility can meet 100% of the mandatory SAF needs for the Peninsula up until 2030 if operated solely in SAF mode. This significant development underscores our commitment to providing real, operational solutions to reduce aviation emissions. Our plant is a tangible step towards achieving substantial emission reductions in the aviation sector.
The concept of a circular economy is increasingly discussed. Can you elaborate on your initiative involving used cooking oil collection in Madrid and its extension to other communities?
Our initiative for collecting used cooking oil from customers at our service stations has been extended beyond Madrid to other Spanish regions such as Galicia and Castilla-La Mancha.
Customers can bring their used cooking oil to our service stations, where we collect it and reward them through our payment and loyalty app, Waylet. We have already collected 25,000 liters of used cooking oil, which is then processed at our Cartagena plant to produce HVO and SAF. While the volumes collected may not seem significant on a global scale, the initiative is crucial for raising awareness about circular economy practices among consumers. This initiative not only engages customers in sustainable practices but also contributes to our renewable fuel production efforts, demonstrating the practical implementation of circular economy principles.
Balancing the need for affordable energy with sustainability is a significant challenge. How does Repsol approach this issue?
Balancing affordability and sustainability is indeed a critical challenge. While sustainability is crucial, energy must also be accessible and affordable to consumers. This balance is part of the energy trilemma we face.
In Spain, for instance, the average age of cars has increased from eight years in 2008 to over 14 years now, partly because consumers face confusion and cost barriers when considering newer, more sustainable options like EVs. Renewable fuels offer an affordable alternative, priced similarly to premium traditional fuels, and do not require consumers to replace their vehicles or infrastructure.
Our app, Waylet, plays a crucial role in this by offering customers rebates on fuels and electricity bills when they purchase various energy products from Repsol. This holistic approach ensures that customers benefit from sustainability measures without facing financial hardship, maintaining the delicate balance between cost efficiency and sustainability.
Is there anything else you’d like to add or any final points you'd like to make?
Yes, I’d like to highlight some figures that underscore the competitiveness of our renewable fuels. For example, our Cartagena plant avoids about 900,000 tonnes of CO2 annually, equivalent to the emissions saved by all electric vehicles currently on the Spanish roads, which amounts to around half a million EVs. The difference is that our plant, a private investment of 250 million euros, achieves the same effect at a fraction of the public cost—4 billion euros in government subsidies for those EVs.
Moreover, there’s a mandate in Europe to progressively increase SAF in airlines. Airlines are proactively exceeding these mandates because SAF is currently their only viable decarbonization solution. We must ramp up production and adoption of such fuels as quickly as possible to meet the urgent needs of these industries.
