Repsol Launches €130 Million Renewable Fuel Plant in Puertollano with 200,000 Tonne Annual Capacity

Repsol has begun large-scale production of 100 percent renewable fuels at its Puertollano Industrial Complex in Ciudad Real, marking the launch of its second dedicated renewable fuel plant on the Iberian Peninsula following the existing 250,000 tonne per year facility in Cartagena. The €130 million investment transforms a former fossil-based refinery unit into a facility capable of processing used cooking oil and other agri-food waste into renewable diesel, making it the first such conversion of its kind on the Iberian Peninsula. The plant's 200,000 tonne annual production capacity is expected to prevent the emission of approximately 700,000 tonnes of carbon dioxide per year on a lifecycle basis compared with the conventional fuels it replaces, with Repsol's Nexa Diesel product now available at more than 1,600 service stations across Spain and Portugal.

 

Feedstock Strategy and Circular Economy Integration

 

The Puertollano plant processes used cooking oil and other organic waste from the agri-food industry, aligning the facility with circular economy principles by converting food supply chain residues into high-value transport fuels. This waste-based feedstock approach avoids the land use change concerns associated with virgin crop-based biofuels, providing a more defensible sustainability profile for the renewable diesel produced. The facility also produces biojet fuel from organic waste for distribution to major airlines, extending Repsol's renewable fuel capabilities into the sustainable aviation fuel segment within a single industrial complex.

An additional €16 million investment will enable the plant to use renewable hydrogen to further reduce the carbon dioxide footprint of the diesel produced by up to 98 percent compared with mineral-based fuel. The renewable hydrogen will be produced at the industrial complex by replacing natural gas with biogas produced from waste, creating an integrated circular energy system within the complex. This renewable hydrogen integration represents a significant technical advancement in the lifecycle carbon intensity of the renewable diesel output, strengthening its competitiveness in markets with stringent renewable fuel sustainability criteria.

 

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Local Economic Impact and Industrial Transformation

 

The construction and commissioning phases of the Puertollano project logged more than 650,000 work hours, involving around 80 subcontractors, the majority from the local region, with an average daily workforce of more than 110 people peaking at over 250 workers. Antonio Lorenzo, Director of Repsol's Industrial Complex in Puertollano, described the project as one of the most ambitious undertaken in recent years at the complex and said it demonstrates Repsol's commitment to industry, quality job creation and solutions that strengthen Spain's energy independence. The project's impact on the local industrial base positions renewable fuel production as an economic development pillar for the Puertollano region alongside its environmental credentials.

Over the past five years, Repsol has invested nearly €800 million in Puertollano across transformation and future-oriented projects designed to enhance the industrial complex's competitiveness and open new markets. Alongside the renewable fuel plant, the complex is introducing production of ultra-high-molecular-weight polyethylene, recycled plastic materials under the Reciclex brand and recycled polyol from mattress foam, reflecting a deliberate strategy to transition the site from a conventional refinery to a diversified circular economy and advanced materials hub. This multi-product transformation illustrates how established refining infrastructure can be repurposed to support both decarbonisation and high-value manufacturing at industrial scale.

 

Commercial Rollout and Drop-In Fuel Advantages

 

The drop-in nature of Repsol's Nexa Diesel is central to its commercial proposition, as the fuel is compatible with all diesel engines and can be used immediately in cars, trucks and ships without modifications to vehicles or refuelling infrastructure. This compatibility removes one of the primary barriers to renewable fuel adoption, allowing fleet operators and individual drivers to access lower-carbon transport without capital investment in new vehicles or fuelling equipment. The availability of Nexa Diesel at more than 1,600 Repsol service stations across Spain and Portugal provides meaningful retail coverage for early market penetration, with the network continuing to expand.

The renewable fuel's application across road transport and maritime shipping addresses two of the most challenging sectors for electrification, where liquid fuels will remain the primary energy carrier for heavy-duty applications throughout the current decade. Repsol's strategy of producing drop-in renewable fuels from organic waste within existing refinery infrastructure positions the company as a near-term transition enabler rather than a long-term fossil fuel incumbent, leveraging existing industrial capabilities and distribution networks to accelerate decarbonisation in hard-to-electrify segments.

 

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Outlook for Repsol's Renewable Fuel Platform

 

Repsol's combined renewable fuel capacity of 450,000 tonnes per year across Cartagena and Puertollano establishes the company as the leading producer of renewable fuels on the Iberian Peninsula, with a commercially scaled platform that can grow as feedstock availability and regulatory demand expand. The integration of sustainable aviation fuel production alongside road transport renewable diesel at Puertollano creates operational synergies and positions the complex to serve multiple decarbonising transport sectors from a single industrial location. Continued investment in renewable hydrogen and biogas production within the complex will further strengthen the lifecycle carbon credentials of the fuels produced.

Whether Repsol can maintain its renewable fuel leadership as European demand scales under ReFuelEU Aviation mandates, renewable transport fuel obligations and growing corporate procurement will depend on feedstock security, regulatory framework stability and continued capital investment in production capacity. The Puertollano plant's waste-based feedstock model provides a defensible sustainability profile that should remain competitive under tightening lifecycle carbon intensity requirements. Sustained execution would reinforce Repsol's transition narrative and demonstrate that established European energy companies can successfully reposition refining assets within a low-carbon industrial strategy.

 

Source: Repsol