December 4 (Renewables Now) - Spanish oil and gas company Repsol SA (BME:REP) has adopted a strategy to gradually reduce its carbon dioxide (CO2) emissions until reaching net zero in 2050.
Repsol on Monday provided a road map to 2050, setting a goal to cut emissions by 10% by 2025 compared to the 2016 baseline, 20% by 2030 and 40% by 2040 before the stop at net zero. The company claims it is possible to achieve at least 70% of this target with the technology that is currently on the horizon.
Lining up with the Paris Agreement climate goals will change the accounting value of some of Repsol’s assets, with the company expecting to record a post-tax charge of some EUR 4.8 billion (USD 5.3bn). While the reported income for 2019 will decline, cash flow and the proposed dividend for the year will not be affected, Repsol assures.
The oil-and-gas major last year set up a retail electricity business, Repsol Electricidad y Gas, and added a renewables unit to the list of its activities this September. So far, the company has 2,952 MW in operation and 1,083 MW in development, with more investments lined up for two solar photovoltaic (PV) and one wind project totalling another 1,600 MW.
Renewables will further find their use in the company’s industrial processes and refining operations, which will also entail the production of green hydrogen.
(EUR 1.0 = USD 1.108)