Earnings rose in Repsol’s commercial and renewables division last year as the Spanish oil firm started operations at new renewables projects amid an increasing commitment to its own energy transition, while easing pandemic-related restrictions in mobility and aviation also helped.
The division posted a results of €542m ($614.9m) in 2021, up from €485m a year earlier.
Repsol now has more than 3.7GW of low-carbon generation (which bundles renewables and fossil gas), a capacity it aims to boost to 6GW by 2025, and 20GW by 2030.
“Although the road ahead is not without its challenges, at Repsol, we are fully committed to the energy transition,” chairman Antonio Brufau promised.
“We are convinced that we will play a significant role in the transition toward a climate-neutral world, as we use all available technologies and energies on the path to becoming a net zero emission company by 2050.”
To help the expansion, the company last year bought a 40% stake in US solar and storage developer Hecate Energy, which has a development portfolio of more than 40GW.
"On top of that, we took the FID (final investment decision) for a 600MW project in Texas that is going to come into operation by 2023," chief executive Josu Jon Imaz said at an earnings conference call.
"In parallel, we are analysing the possibility of a minority partner joining us in our growth."
In November, Repsol reached an agreement with Pontegadea, in which the investment firm takes a 49% stake in Repsol’s 335MW Delta wind complex in Spain.
Also in its domestic market, Repsol inaugurated the 126.6MW Kappa PV complex in the province of Ciudad Real, and began production at the 264MW Valdesolar PV plant in the province of Badajoz.
Work also began last year on the company’s so far largest renewables project, the 860MW Delta II wind complex that is slated to consist of 26 wind farms in Aragon.
Repsol in 2021 also signed power purchase agreements with internet giant Amazon to supply it with renewable energy generated by 234MW of capacity from wind and solar projects located in Spain, and is rapidly boosting its network of ultra-fast charging points for electric vehicles in the country.
The oil company last year pledged to allocate 35% of its €19.3bn of planned investments between 2021 and 2025 to low-carbon initiatives.
Repsol in October presented its own hydrogen strategy, and plans to reach a generation capacity equivalent of 552MW by 2025, and 1.9GW by 2030. Hydrogen is part of Repsol’s industrial division, the posted a result of €606m last year, up from €297m a year earlier.
The company is part of the Spanish Hydrogen Network (SHYNE) project made up of 33 entities from different sectors, as well as the Basque Hydrogen Corridor (BH2C) and the Hydrogen Valley of Catalonia.
Together with Portuguese utility EDP, it has formed an alliance to start different H2 projects in the Iberian Peninsula, and reached an agreement with train manufacturer Talgo to promote a renewable hydrogen-powered train.
As part of its multi-energy approach, Repsol has obtained a permit to evaluate the geo-thermal potential of the volcanic Spanish island of Gran Canaria, which could increase the energy independence of the islands.
The company’s overall net adjusted income soared to €2.45bn in 2021, from €600m in 2020, boosted by surging upstream oil & gas earnings as business returned to pre-pandemic levels.
UPDATES with FID taken on 600MW Texas solar project