Spain’s Official Credit Institute (ICO) has provided Repsol, one of the largest energy companies in Spain, with a €300m loan to support its ambitious strategy to achieve net zero emissions by 2050. The loan is backed by sustainability criteria and is focused on the transformation of Repsol’s industrial facilities into multi-energy hubs.
Repsol plans to generate products with a low, zero, or negative carbon footprint, based on innovation, circular economy, and its commitment to lead the production of renewable fuels and renewable hydrogen. This loan will finance the investments required to decarbonize and transform Repsol’s industrial complexes in the Iberian Peninsula, including A Coruna, Bilbao, Tarragona, Puertollano, and Cartagena in Spain and Sines in Portugal.
See also: SunPower Secures $450 Million Financing for Residential Solar and Storage Loan Program
During the loan signing ceremony in Madrid, the ICO Chairman Jose Carlos García de Quevedo stated that “With this operation, ICO strengthens its commitment to sustainable finance to promote the ecological transition and the environmental, social and governance (ESG) sustainability of the Spanish business fabric, as established in its Strategic Plan 2022-2027.”
Repsol CEO Jon Josu Imaz emphasized that “This loan supports our commitment to industrial transformation, innovation, maintaining industrial business activity and the generation of quality employment.”
Repsol has been actively pursuing its goal of achieving net zero emissions by 2050, and this loan from ICO is a significant step forward in achieving this objective. The company has set a target to reduce its CO2 emissions by 3.1 million tonnes by 2025, and it plans to allocate 85% of its capital expenditure to low-carbon projects by 2025.
Repsol’s transformation towards renewable energy sources will not only help it reduce its carbon footprint but will also create opportunities for new business models, services, and products. As the energy industry evolves, it is crucial for companies to adapt and embrace sustainability to stay competitive in the market.
See also: Flux Power Secures $14 Million Credit Facility Extension with Silicon Valley Bank
The loan from ICO to Repsol is an excellent example of how the financial sector can play a crucial role in supporting the transition towards a more sustainable economy. As the Chairman of ICO highlighted, sustainable finance is essential to promote the ecological transition and ESG sustainability of the Spanish business fabric. The financial sector can help accelerate the transformation of industries towards a more sustainable future by providing support, guidance, and financing to companies that prioritize sustainability.
