Decarbonization and Circularity Repsol Acquires Stake in Waste-to-Renewable Fuels and Chemicals Technology Firm Enerkem
With Repsol becoming a shareholder in Enerkem, the Spanish company can now utilize Enerkem’s green technology in the development of its existing industrial facilities and future units. It is also collaborating with Enerkem and Agbar to establish the Ecoplanta Molecular Solutions waste recovery plant in El Morell, Spain which will utilize Enerkem's gasification technology.
Madrid/Spain – Repsol has acquired a minority stake in the Canadian company Enerkem, a technological world leader in the production of renewable fuels and chemical products through gasification of non-recyclable waste. This investment allows the Spanish multi-energy company to step up the development of decarbonization projects through the deployment of Enerkem’s technology in its existing industrial facilities and future plants.
Repsol has subscribed 59 million dollars to Enerkem's share capital. It will contribute an additional 74 million dollars through the subscription of convertible notes which could allow Repsol to increase its stake in accordance with a number of financial variables over the coming years. This makes Repsol a strategic shareholder in the company to accelerate the adoption and deployment of Enerkem's technology and to develop new industrial projects in Spain and other locations.
The Spanish multi-energy company is already partnering with Enerkem and Agbar to build the Ecoplanta Molecular Solutions waste recovery plant in El Morell (Tarragona), Spain, scheduled to be operational in 2026. Using Enerkem's gasification technology, the plant will have the capacity to process some 400,000 tons of non-recyclable solid waste per year to produce 240,000 tons of methanol that can be used for low-carbon fuels and chemicals and recover 70 % of the carbon present in the non-recyclable materials.
Based on the European Commission’s Innovation Fund methodology, the project will achieve 3.4 Mt CO2eq of greenhouse gas (GHG) emission reductions over the first ten years of operation. Thus, the Ecoplanta project is aligned with the EU’s decarbonization and climate change mitigation goals.
Among more than 300 projects submitted by major European industrial groups, Ecoplanta Molecular Solutions is one of seven projects selected for financial support from the European Commission’s Innovation Fund for large scale projects. The final grant agreement was signed at an event in Brussels.
Juan Abascal, Executive Director for Industrial Transformation and Circular Economy of Repsol, said: “At Repsol, we are truly proud to become a shareholder in Enerkem thus supporting its development to consolidate as a leader in waste gasification technology to produce renewable fuels and chemicals. We anticipate that its cutting-edge technology, recently recognized by the European Innovation Fund, will be key to the decarbonization and circularity of the chemical and fuel industry. Enerkem has several projects in different stages of development that will help Repsol accelerate its circular economy initiatives and open up new paths for production of low-carbon and synthetic fuels and renewable chemical products.”
Dominique Boies, Chief Executive Officer of Enerkem, said: "We are pleased to welcome Repsol as a shareholder and member of Enerkem's Board of Directors. Repsol is a global multi-energy supplier that will contribute to the accelerated deployment of our technology to new markets. Repsol's equity investment in Enerkem strengthens our position as a leader in the renewable fuels and chemicals sectors and in building a circular economy."