BARCELONA, SPAIN — As part of a partnership with Bunge Global SA to expand renewable fuels opportunities in Europe, Spanish multi-energy company Repsol will acquire 40% of three industrial facilities that are part of Bunge Iberica, one of Bunge’s subsidiaries in the Iberian Peninsula for $300 million, plus up to $40 million in contingent payments.

Repsol and Bunge have agreed to partner in the development of new opportunities to help meet the growing demand for lower carbon intensity feedstocks for the production of renewable fuels. This alliance will help to accelerate the ramp-up of production of these fuels mandated by the European Union. The transaction is subject to customary closing conditions, including regulatory approvals.

US-based Bunge will continue to operate its three plants dedicated to the production of oils and biofuels in Bilbao, Barcelona, and Cartagena, near Repsol’s industrial complexes located in the same regions. Bunge also will continue to be a key producer of protein meals, vegetable oils and distributor of agricultural commodities in Spain.

The companies plan to explore other areas of cooperation and project development designed to increase the potential availability of non-food lipidic feedstocks for the renewable fuels market as part of the partnership.

“This is an exciting step for Bunge in Spain and supports our commitment to create alternative paths towards the decarbonization of agricultural and oil supply chains in our industry,” said Julio Garros, co-president, Agribusiness, at Bunge. “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.”

Through the partnership, Repsol said it will increase its access to a wide portfolio of low-carbon intensity feedstocks to produce renewable fuels, an immediate way to accelerate the reduction of emissions from transportation, including cars, trucks, airplanes and shipping.

Repsol has an annual production capacity of 1.1 million tonnes of renewable fuels. The company, which has the largest service station network in Spain, said it expects to increase its output by up to 55%, reaching 1.7 million tonnes in 2027.

Repsol is starting up its 250,000 tonnes-a-year advanced biofuels plant in Cartagena, the first of its kind in the Iberian Peninsula. The company is retrofitting another unit at its industrial complex in Puertollano, Spain, with a capacity to produce 200,000 tonnes of renewable fuel per year.