Repsol Aims to Increase Renewable Fuel Production to 1.5 Million Metric Tons Annually by 2028

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March 11, 2026

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by Erin Krueger (Biodiesel Magazine) Spain-based multinational energy company Repsol on March 10 announced plans to invest up to EUR 10 billion ($11.61 billion) in its operations through 2028, with a portion of that investment dedicated to low-carbon projects, including renewable fuels.

The company said it expects to make net investments of between EUR 3.9 billion and EUR 4.1billion in its industrial business over the next three years, with 40% of that allocated to low-emission initiatives, such as the production of renewable fuels and hydrogen.

Repsol said it plans to increase the production of renewable fuels to 1.5 million metric tons per year by 2028. The company highlighted a project already underway at in Puertollano, Spain, which is expected to begin operations during the second quarter of this year. The project will boost renewables capacity at the site by 200,000 metric tons per year.

According to Repsol, its investments in renewables has positioned the company as the main producer of renewable diesel and sustainable aviation fuel (SAF) in Spain and Portugal, contributing more than 70% of the production in both countries, and more than 10% in the European Union as a whole. Last year, more than 90% of the renewable diesel and SAF produced by Repsol was traded through the company’s own channels.

Repsol also announced it is making progress with a synthetic fuels demonstration plant in Bilbao, Spain, that will convert urban waste into methanol. That facility is expected to be fully operational in 2027. In addition, the company is making investments in renewable hydrogen production and plans to progressively replace the conventional hydrogen it uses as a raw material in its industrial centers with renewable hydrogen. Repsol has set a goal to reach an equivalent production of up to 300 megawatts (MW) by 2028. READ MORE

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Spain's Repsol hikes payout and oil output targets, reduces investments (Reuters)
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Repsol S A : to invest €10 billion through 2028, allocating more than half to Spain and Portugal (Repsol/Market Screener)

Excerpt from Reuters:

Repsol hikes payout goal to 30%-40% of cash flow from operations
Aims to increase oil production, slow low-carbon investments
Net investments through 2028 reduced to 7.5-9 billion euros

MADRID, March 10 (Reuters) - Spanish energy group Repsol (REP.MC), opens new tab pledged on Tuesday to give shareholders between 30% and 40% of the cash flow it generates from its operations through 2028 via dividends and buybacks, while increasing oil production and slowing down investments.

The move aligns with the company's recent strategic plans, which have ⁠prioritised shareholder returns.

Repsol will distribute 3.6 billion euros ($4.2 billion) in cash dividends and use buybacks to reach its target, with dividend per share expected to grow around 6% annually.

...

The company forecasts net investments through 2028 at between 7.5 billion and 9 billion euros. This is down from a 16 billion to 19 billion euros range in its previous multi-year ⁠plan. Around 30% to 35% will go to upstream, a higher share than in the previous plan, with another 30% going to low-carbon businesses, down from around 35%. READ MORE

Excerpt from Wall Street Journal: Repsol will invest up to 10 billion euros with a focus on projects that have already been approved. Of this, 55% will be invested in Spain and Portugal, and 34% will be spent in the U.S.

The energy company operates both traditional oil-and-gas assets, as well as low-carbon projects. Around 30% of its new spending will be directed to low-carbon projects, it said. READ MORE

Excerpt from Repsol/Market Screener: Emissions reductions

With respect to decarbonization, Repsol has achieved its goal for 2025 with a 15% reduction in the Carbon Intensity Indicator compared to 2016 by implementing a strategy based on the efficiency, competitiveness, and integration of its businesses. The company maintains its ambition to achieve net zero emissions in the long term and continues to move forward on this path with discipline and a focus on value creation, adjusting its medium-term objectives to the prevailing context to deliver a profitable energy transition. It sets a 2030 target to reduce its Carbon Intensity Indicator by 25% (±1) to reach 55% in 2040 and 100% in 2050.

The updated metrics for the 2026-2028 period cover the company's four businesses - Upstream, Industrial, Customer, and Low Carbon Generation. They are anchored in projects where Repsol has a clear competitive advantage and attractive market opportunities, particularly capitalizing on the integration and efficiency of the Industrial and Customer businesses.

...

Industrial: reinforcing industrial assets and reaffirming the commitment to renewable fuels

Repsol has a highly competitive refining system, with top-tier assets and a track record of solid and sustained performance. Its seven major industrial centers - located in Spain, Portugal, and Peru - make a significant contribution to securing the energy supply in these countries, and their activity generates more than 6,500 direct jobs, reinforcing the economic and social role of the company, in addition to its energy contribution.

The Industrial area is key to the company's business model, as the integration of its industrial, trading, and commercial assets with renewable generation and new renewable fuel platforms enables it to provide all the energy that society needs to move forward.

During the 2026-2028 period, the priorities of the Industrial business will continue to be aligned with the Strategic Update presented in 2024: strengthening conventional assets to stay at the forefront of the industry, while consolidating low-carbon platforms as a key lever for growth and differentiation. The trading business will play a growing role, driven by the expansion of its global footprint and product portfolio.

Repsol expects net investments of between €3.9 and €4.1 billion in the Industrial business through 2028, of which 40% will be allocated to low-emission initiatives, such as the production of renewable fuels and hydrogen.

The company plans to increase the production of renewable fuels, to reach 1.5 million metric tons per year by 2028. Among the projects underway, the Puertollano renewable fuels plant stands out, with start operations in the second quarter of 2026. This plant will add an annual production capacity of 200,000 metric tons, in addition to the capacity already existing in Cartagena.

This positions Repsol as the main producer of renewable diesel and sustainable aviation fuel (SAF) in Spain and Portugal and as one of the leaders in Europe, contributing more than 70% of the production in both countries and more than 10% in the European Union as a whole. In 2025, more than 90% of the renewable diesel and SAF produced has been traded through the company's own channels.

The company is also making progress in the synthetic fuels demo plant in Bilbao, which will be fully operational in 2027, as well as with Ecoplanta in Tarragona, which is set to be commissioned in 2029 after an investment of more than €800 million. This facility, a trailblazing project in Europe, will transform urban waste into 240,000 metric tons of renewable and circular methanol every year. Due to its innovative nature, Ecoplanta has been selected by the European Union to receive funding through the Innovation Fund program.

Repsol is the largest producer and consumer of hydrogen in Spain and Portugal, and it will progressively replace the conventional hydrogen it uses as a raw material in its industrial centers with renewable hydrogen. The goal is to reach an equivalent production of up to 300 MW by 2028. To this end, it has already approved the investment of its first two large-scale electrolyzers, with a capacity of 100 MW each, in Cartagena and Bilbao. Both have been recognized as important projects of common European interest (IPCEI) and have, therefore, received NextGenerationEU funds. In the first half of 2026, approval is expected for a third large electrolyzer, with a capacity of 150 MW, in Tarragona.

Client: multi-energy leadership in Spain and Portugal

Repsol's Client business has established itself as leading player in Spain and Portugal, with more than 24 million customers and a unique multienergy offering.

With net investments of €1.4 to €1.6 billion planned between 2026 and 2028, the Client area will focus its efforts on consolidating the leadership of its traditional businesses - mobility, lubricants, aviation, and LPG - as well as driving the growth of the new businesses - power and gas, electric mobility, and distributed generation - with the aim of consolidating a commercial platform that goes beyond energy.

In this regard, the company will continue to evolve the business model of its more than 3,800 service stations in Spain and Portugal, providing the most complete mobility energy offerings in the sector (conventional fuels, autogas, electric mobility, and renewable fuels) and value services for the customer, through the consolidation of its alliances with leading partners in their respective segments, such as Amazon, El Corte Inglés, Enrique Tomás, Inpost, and Levaduramadre, among others.

Repsol will also continue to work on strengthening the distribution and marketing of Nexa Diesel of 100% renewable origin, Repsol's highest quality diesel, as a solution to tackle the challenge of decarbonizing transport, alongside the promotion of electric mobility.

Another growing business is lubricants, with the ambition to consolidate its national leadership and boost its international presence and the aim to double the size of the business by 2030.

As for the power and gas market in Spain and Portugal, in which Repsol is already the fourth operator with more than three million customers, the goal is to boost organic growth and exceed 4 million by 2028.

The entire multi-energy offering is leveraged on the strengthening of physical and digital channels, as a tool for customer proximity, aiming to increase the number of digital users to 13 million by 2028, mostly through the Waylet app, which already has 10 million users. By 2028, the Customer business expects the number of multi-energy customers to grow by 30% to reach 1.6 million. It also expects the wide range of multi-energy solutions will be offered at 80% of the station network in Spain.

Low Carbon Generation: self-funded growth

The Low Carbon Generation business, supported mainly by the organic development of its portfolio of solar and wind projects, will continue to be central to the company's strategy.

Since entering the business in 2018, Repsol has deployed a profitable growth model, which has allowed it to reach 6,000 MW of renewable energy in operation and the incorporation of partners into its portfolio to crystallize value. In less than seven years, this model has allowed the company to rotate more than 3,000 MW of wind and solar in operation, reaffirming the attractiveness of its portfolio and bringing in partners such as Pontegadea, Schroders Greencoat, Stonepeak, and TRIG.

In the 2026-2028 period, Repsol expects to reach up to 9,000 MW in operation. This growth will be delivered under strict investment discipline, concentrating spending on the highest-return projects and limiting the company's financial exposure by leveraging additional financing avenues - such as asset rotations, the incorporation of partners, or project financing - to maximize value generation and secure returns above 10%. The objective is for the business to be self-funded over the period.

Specifically, Repsol will allocate net investments of between €500 million and €1 billion to this area during the period, mainly to opportunities in Spain and the United States, following two different strategies.

In Spain, where the company has more than 3,200 MW of renewable energy in operation (hydro, wind, and solar), the updated path through 2028 prioritizes the development of higher-value projects - especially wind and battery energy storage systems (BESS) - as well as maximizing the value of existing assets through hybridizations. Additionally, the company foresees future growth options, not included in the projections, subject to the development of projects such as the Aguayo II pumped-storage hydro plant in Cantabria, and opportunities linked to the boom in data centers in Spain.

In the United States, where Repsol already has more than 2,000 MW in operation, priority will be given to projects with the higher returns and favorable regulatory conditions. At the same time, the company will maintain a broad pipeline of initiatives to capture future opportunities arising from growing power demand and potential regulatory changes, while considering the possibility of bringing in a partner. READ MORE