Cepsa eyes green hydrogen leadership with €8bln investment

Cepsa will invest between 7,000 and 8,000 million euros in the energy transition in Spain and Portugal over the next decade, with the goal of becoming a leader in “green” hydrogen by 2030, with two gigawatts (GW).

“The company will invest between 7,000 and 8,000 million euros this decade, with 60 percent of that going to sustainable businesses starting in 2023,” said Cepsa, which unveiled its new 2030 Strategy, dubbed “Positive Motion,” on Wednesday, with the goal of “becoming a leader in mobility and sustainable energy in Spain and Portugal, and to be a reference in the energy transition.”

Cepsa also stated that “it will become the leader in ‘green’ hydrogen in Spain and Portugal” by 2030, with a capacity of two GW, and that “it will lead the production of biofuels” by 2030, with a capacity of 2.5 million tonnes per year, “especially to decarbonize air traffic, producing 800,000 tonnes of SAF (sustainable aviation fuel).”

As a result, the firm aspires to become a “reference” in the import and export of “green” hydrogen to Europe, Africa, and the Middle East, “due to the favorable position of its facilities in the Iberian Peninsula,” which includes two energy parks in Andalusia.

According to the declared strategy, the sustainable business will account for more than half of Cepsa’s gross operating profit (EBITDA) in 2030, the year in which it expects to cut carbon dioxide (CO2) emissions of ranges one and two by 55 percent and range three by 15 percent to 20 percent.

Beginning in 2023, the corporation plans to devote 60% of its budget to sustainable initiatives.

Its objectives include the establishment of Spain and Portugal’s most comprehensive sustainable transportation ecosystem and the largest ultra-fast electric charging network, as well as the transformation of its service stations.

Cepsa’s strategy also calls for the construction of a portfolio of renewable, solar, and wind energy projects totaling seven gigawatts (GW) for internal use, with 1.5 GW already linked to the grid.

To optimize their value creation potential, the Chemicals and Exploration and Production divisions will be given even more autonomy.

Cepsa CEO Maarten Wetselaar, who entered office earlier this year, stated in the strategy presentation that the firm is “small enough to act rapidly, but big enough to be a leader in creating a greener, fairer, and more sustainable economy.”