Spanish oil and gas company Cepsa will invest between €7 billion ($7.8 billion) and €8 billion in Spain and Portugal through 2030, of which 60% will be ploughed into sustainable businesses to reinforce its energy transition strategy.
Plans presented by the company this week include development of a seven-gigawatt renewable energy project pipeline focused on solar and wind power facilities, mainly for its own use.
Some 1.5 GW of this renewable energy has already been connected to the power grid in Spain.
The right size
Cepsa chief executive Maarten Wetselaar said: “At Cepsa, we are embarking on an ambitious journey to transform our company and be a key driver and enabler of the energy transition. Cepsa is small enough to move fast yet big enough to be a leader in creating a greener, more just and more sustainable economy.”
Spain is already one of the leading countries in Europe for renewable energy, especially for installed capacity of solar, but also for wind energy.
Key players include Cepsa's larger oil industry cousin Repsol, as well as utility Iberdrola and project developer Acciona.
Cepsa said its new ‘Positive Motion’ strategy, includes plans to become one of Spain’s main hydrogen producers and a key player in the import and export of hydrogen between Europe, Africa and the Middle East.
Backed by key stakeholders Abu Dhabi wealth fund Mubadala and private equity giant Carlyle Group, Cepsa is aiming for a hydrogen production capacity in Spain and Portugal equivalent to 2 GW by 2030.
Targeted investments will include 2.5 million tones of biofuels production by 2030 and an ultra-fast charging network in Spain and Portugal.
Wetselaar added: "There is no question that these are uncertain times, with the war in Ukraine upending the lives of millions of people and destabilizing global energy markets.
“The strategy we are presenting today is a long-term plan that reflects the historic opportunity that Spain and its energy companies have to become key players in promoting and producing clean energy.”
The strategy also includes plans to reduce the company’s Scope I and 2 carbon emissions by 55% from their 2019 levels by 2030, becoming carbon-neutral by 2050 and net positive thereafter.
Cepsa also aims to reduce its Scope 3 emissions by between 15% and 20% by 2030.
The company expects to generate more than half of earnings before interest, taxes, depreciation and amortisation from sustainable businesses by 2030
Cepsa also said that allowing “greater autonomy” in the management of the company’s traditional exploration and production business would be key to generating cash flows to facilitate the group’s transformation.