close
close

Saudi Aramco is considering a stake in Repsol’s renewable energy business

Posted on by darion

Repsol has the ambition to reach 6 GW of global installed capacity by 2025 and increase it to 14 GW by 2030. Source: Repsol/Shutterstock.com.

According to the Spanish newspaper Expansion, Saudi Aramco, the state-controlled oil giant, is interested in acquiring a minority stake in the renewable energy division of the Spanish oil company Repsol.

This development comes as Repsol seeks investment partners for its wind farms and solar power plants, which is in line with its strategy to transition to renewable and low-emission projects.

Repsol Renewables, which includes those assets, was valued at 5.9 billion euros, including debt, according to an April UBS research note, Reuters noted.

Saudi Aramco’s interest was first reported by a Spanish newspaper, which pointed out that the Saudi company was particularly focused on Repsol’s renewable assets in the US.

Although no formal offer has been made, Repsol has entered into talks to sell shares in its renewable energy business.

This was the result of an unsolicited investment proposal in which Santander was appointed to advise on the potential sale.

Access the most comprehensive company profiles on the market, powered by GlobalData. Save hours of research. Gain a competitive advantage.

Company Profile – free sample

You will receive a download email shortly

We are sure of the exceptional quality of our company profiles. However, we want you to make the most beneficial decision for your business, which is why we offer a free sample, which you can download by submitting the form below

By GlobalData







Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information about your rights in relation to your personal data and how you can unsubscribe from future subscriptions marketing messages. Our services are intended for corporate subscribers and you warrant that the email address you submit is your corporate email address.

Previously, Repsol sold a 25% stake in its renewables business to Credit Agricole and Energy Infrastructure Partners, raising €905 million.

Neither Saudi Aramco nor Repsol commented on the matter.

Last month, when announcing its first quarter 2024 results, the company said it planned to invest between €3 billion and €4 billion net in the organic growth of its global portfolio of renewable energy projects.

In May 2023, El Confidencial reported that Repsol plans to divest its 49% stake in its renewable projects located in Spain.

The company’s renewable energy portfolio in Spain exceeds 3.2 GW, of which about half is currently in operation.

Repsol’s ambition is to reach 6 GW of global installed capacity by 2025 and expand to 14 GW by 2030.

Repsol’s renewable energy operations cover Spain, Portugal, Italy, Chile and the USA. To support these goals, last July the European Investment Bank provided a €575 million loan to Repsol to develop wind and solar projects in Spain, which will provide an additional 1.1 GW of capacity.