Repsol, a Spanish company, has cut its renewable energy target

A report released in conjunction with its 2025 results shows that Repsol, the Spanish energy company, has reduced its 2030 targets for renewable capacity and products low in carbon emissions as it adapts to changing market conditions.

The?company? has built a portfolio of hydroelectric, wind and solar projects in Spain and overseas as part of its strategy to transition from an oil and gas company into a multi-energy provider. It has also invested in the production of?green hydrogen and low carbon fuels.

The report says that it now targets more than ten gigawatts of installed renewable capacity by 2030. This is mainly in Spain and the United States.

In 2021, it planned to double that capacity, or 20 GW, by 2030.

The report states that "growth in 'the coming years' has been adapted to the evolution in 'the environment. This is marked by higher development and financing costs as well as tax incentive in the United States. Prioritising investments on the basis of profitability thresholds established by Repsol," it adds.

Repsol will have a total installed capacity of 5,8 GW by the year 2025.

Repsol has also reduced its target for low-carbon fuels "in response to prevailing regulatory trends and demand, particularly in relation with renewable hydrogen."

The company expects to achieve a capacity of between 1.6-1.8 million tons for biofuels, and between 0.7-0.8 TWh for biomethane. The previous targets were between 2.4 and 2.7 million tonnes, as well as 2.1 to 22.3 TWh.

The 'targets' for green hydrogen had been slashed due to the delays in the development of the market and regulatory framework.

Repsol's spokesperson referred to remarks made by Chief Executive Josu?Jon Imaz Thursday.

He said: "In terms of our 'decarbonisation path, after delivering on the'short-term obligations set for 2025 we will modulate the medium-term goals, while keeping the long-term targets according to the existing regulatory and business framework." (Reporting and editing by David Holmes; Pietro Lombardi)

(source: Reuters)