Paula María Madrid
Madrid
Updated Tuesday, March 26, 2024-08:27
"We are not going to be distracted by a lawsuit (...) we will fight tooth and nail for our transformation." With these words, the CEO of
Repsol
, Josu Jon Imaz, responded last Thursday to
Iberdrola
's demand for "ecopostureo" that was supported by vice president
Teresa Ribera
. No sooner said than done. This Tuesday, Repsol announced to the market the purchase of 40% of three biofuel plants that the Swiss Bunge operates in
Barcelona, Bilbao and Cartagena
for 340 million dollars (about 313 million euros).
The investment involves doubling the commitment of the company led by Imaz to renewable fuels, those that are manufactured from urban, agricultural or livestock crops or waste. It is precisely the advertising that Repsol has done for these products that supports Iberdrola's lawsuit, which sees the previous strategy as a violation of the Unfair Competition Law.
In detail, the announced acquisition is the first of its kind to be signed across the continent and seeks to accelerate the increase in production of this type of fuel whose demand is growing in the European Union.
"Through this strategic agreement, Repsol acquires 40% of three industrial facilities that are part of Bunge Ibérica, one of Bunge's subsidiaries in the Peninsula," the energy company explained in a relevant fact. The transaction is
subject to customary closing conditions
, including regulatory approvals. The transaction will involve a disbursement for Repsol of "300 million dollars and up to an additional 40 million dollars in contingent payments."
With headquarters in Geneva (Switzerland) and corporate headquarters in St. Louis, (Missouri). Bunge is one of the largest biodiesel producers in southern Europe. In Spain, it has strategic enclaves with which it manages to deliver its products by sea. Additionally, it is a processor and supplier of special plant-based oils, fats and proteins.
Through the recent alliance, it is extended to the aforementioned three Bunge plants dedicated to the production of oils and biofuels. All of them are adjacent to industrial complexes of the Spanish energy company. "Through this alliance,
Repsol increases its access to a broad portfolio of low-carbon intensity raw materials
to produce renewable fuels, which represent an immediate route to accelerate the reduction of emissions from transportation, including cars, trucks, planes and ships" , the company has detailed.
Repsol's green strategy has been in the eye of the storm for days as a result of the judicial process initiated by Iberdrola in the Commercial Court of Santander, where the defendant's gas and electricity marketing subsidiary has its headquarters.
The judicial front has exploded at a key moment for Repsol, which at the next Shareholders' Meeting, on May 10,
will examine its sustainability plan
. The result of the vote will undoubtedly serve Repsol to legitimize its green strategy before the market, before its competitors and, surely, before the ministry. Or, on the contrary, it will serve as fuel for Iberdrola to fan the "ecopostureo" fire.
The controversy reached new heights after the emergence of the Minister for the Ecological Transition. Ribera celebrated that "
greenwashing
" had reached the courts and, later, clarified that despite being "neutral" in this duel of giants, she was "on the side of a green agenda that does not incur confusion." Imaz counterattacked the critics by accusing Iberdrola of an attempt to "limit competition" and warned Ribera: "Do you want industry, Mrs. Ribera, or do you want to close the refineries?" From the business side, neither the electricity lobby, Aelec, nor the hydrocarbon producers' association, AOP, have descended into the mud.