Repsol has raised its renewable energy target to 6 gigawatts by 2025 and 20GW by 2030 as part of a wider strategy update on its path to become a zero emissions energy company by mid-century.
The Spanish oil and gas company previously had aimed for 5.2GW of renewables by 2025 and 12.7GW by 2030.
“The upgrade of our targets demonstrates the solid progress the company is making towards becoming carbon neutral by 2050," chief executive Josu Jon Imaz told analysts and investors.
"Ambition, technology, and project execution are enabling us to increase the speed at which we will achieve this target.”
Repsol currently has 1.1GW of wind and solar power in operation in Spain and Chile, and a 11.7GW pipeline of renewable projects, also in the US and other countries.
The company is “large enough” to become a leading player in the energy transition, but “small enough in the (oil and gas) universe to feasibly transform the portfolio with attractive opportunities,” Repsol said in a presentation as part of its ‘low carbon day’.
Repsol also has stepped up its ambition for the production of green hydrogen by 40% to 0.55GW in net electrolyser capacity by 2025, and by 60% to 1.9GW in net electrolyser capacity by 2030.
The new green energy goals are expected to help Repsol reach its planned emissions reduction faster.
The company has announced an absolute emission reduction target for the first time.
It is committed to reducing 55% of emissions from operated assets (Scope 1 and 2) and 30% of net emissions (Scope 1, 2, and 3) by 2030.
Repsol’s faster build-up of renewables and green hydrogen capacity is also reflected in its investment plan.
The company has earmarked €6.5 billion ($7.5 billion) in spending into its low carbon businesses in the 2021 to 2025 period, €1 billion more than previously planned.
With that, low carbon investments will account for 35% of overall spending, up from 30% envisaged before.
Capital employed for low carbon projects is slated to grow further and account for 45% of overall investments by 2030.
As part of its low carbon strategy, the Spanish company also is betting on biofuels, and synthetic fuels made from hydrogen, as well as carbon sinks through forestation and carbon capture and storage.