Spanish oil company Repsol has unveiled its 2021 – 2025 strategic plan which will advance its net-zero emissions objective.
Repsol said on Thursday that the new strategy would be highly flexible concerning the macroeconomic environment and that it would be set in motion at a time of historic difficulty to which the company already responded with its Resilience Plan 2020.
The Resilience Plan produced positive cash flow in every business in the first nine months of the year and estimated savings for the whole year of €2.4 billion ($2.85 billion).
In this highly uncertain environment, the company has established two differentiated periods in its strategic plan. In the first two years, it will focus on ensuring financial strength. The plan is self-financing at an average $50 per barrel of Brent and $2.5 per mbtu at the Henry Hub.
During the first period of the plan, efficiency, investment cuts, and optimization of capital will be prioritized together with projects to lead the energy transition. From 2022, with recovery from the impact of Covid-19, the focus will shift to the acceleration of growth.
Repsol added that it would be investing a total of €18.3 billion ($21.8 billion) during the new five-year plan. Low-carbon spending will reach €5.5 billion ($6.5 billion) between 2021 and 2025.
In a scenario of continued higher prices, Repsol plans to accelerate the growth of low-carbon projects in its portfolio. The final target is to achieve net-zero emissions by 2050.
More precisely, the Strategic Plan 2021-2025 aims at a reduction of the carbon intensity by 12 per cent in 2025, 25 per cent in 2030, and 50 per cent in 2040.
Josu Jon Imaz , Repsol CEO, said: “ With this new strategic plan, which leverages our strengths, we are taking a significant step towards becoming a net-zero emissions company, outlining a profitable and realistic roadmap that will allow us to grow, maximise value for our shareholders, and assure the future.
“ Our strategy is based on a multi-energy offering that combines all the technologies for decarbonisation of energy. We will be more efficient and increase our renewable energy objectives as well as our manufacture of products with a low, neutral, or even a negative carbon footprint.
“ We will promote circular economy initiatives, develop new energy solutions for our customers, and boost cutting-edge projects to reduce the industry’s carbon footprint ”.