Repsol will invest more than €800 million in the Tarragona Ecoplant, a pioneering project in Europe to produce renewable methanol
Repsol's Board of Directors has approved the investment in the Ecoplant, a groundbreaking project in Europe designed to convert urban waste into renewable fuels and circular products. This initiative presents an innovative solution for lowering CO2 emissions in the transportation sector while fostering a circular economy.
Situated in Tarragona, the facility—set to receive an investment exceeding €800 million—will be the first in Europe to produce renewable and circular methanol from waste using gasification, the most advanced waste valorization technology available. This cutting-edge process, developed by Enerkem, a technology company in which Repsol holds a stake, enables the reuse of waste that would otherwise be incinerated or sent to landfills.
The plant will have the capability to process up to 400,000 tons of municipal solid waste annually, converting them into 240,000 tons of renewable fuels and circular materials. The renewable methanol will be derived from organic waste, while non-organic waste, including non-recyclable plastics, will be transformed into circular products.
Slated to begin operations in 2029, the facility is expected to generate 340 direct, indirect, and induced jobs, along with approximately 2,800 jobs during the construction phase. It will be integrated into Repsol’s industrial complex in Tarragona, leveraging existing infrastructure to accelerate its transformation into a multi-energy hub that will continue producing essential products, such as renewable fuels and circular materials. This investment underscores Repsol’s commitment to sustaining industrial employment in Spain and contributing to economic growth in the region.
The Ecoplanta has been chosen by the European Union from over 300 projects to receive funding through the Innovation Fund program, recognizing its strong potential for emissions reduction and its unique, innovative approach. According to the European Commission, the Ecoplanta is projected to cut greenhouse gas (GHG) emissions by 3.4 million tons of CO2 over its first decade of operation.
A Key Solution for Decarbonizing Transport
The European Union has set a roadmap to progressively decrease the carbon intensity of maritime transport, targeting a 40% reduction by 2030 (compared to 2018 levels) and a 75% reduction by 2050 (relative to 2020 levels).
Currently, the most effective solutions for meeting these goals include renewable diesel—already being produced at Repsol’s Cartagena facility—and the renewable methanol that will be produced at the Ecoplant. These fuels provide viable alternatives to support the decarbonization of maritime transport and are technologically mature compared to other options like renewable hydrogen, ammonia, or electrified marine propulsion systems, which still require significant advancements and extensive investments in fleet renewal and fuel distribution infrastructure.
In addition to maritime use, renewable methanol will play a crucial role in road transportation by serving as a feedstock for renewable gasoline and diesel production, as well as in the manufacturing of sustainable aviation fuel (SAF). Furthermore, methanol’s versatility extends to the chemical industry, with applications in the automotive and construction sectors, as well as in diverse industries such as healthcare, food, and electronics.
According to the International Renewable Energy Agency (IRENA) and the Methanol Institute, global demand for methanol is projected to increase fivefold by 2050, primarily driven by the adoption of renewable methanol in shipping, road, and aviation fuel, as well as in chemical manufacturing. Given the significant potential of this waste-to-methanol model, Repsol is evaluating the feasibility of replicating it in other regions.
Repsol is determined to lead the production of renewable fuels in the Iberian Peninsula, with an ambitious goal of producing between 1.5 and 1.7 million tons annually by 2027, increasing to 2.7 million tons per year by 2030, including renewable hydrogen and biomethane. Additionally, the company plans to manufacture up to 105,000 tons of circular products per year by 2027, with an increase to 200,000 tons by 2030.