Decarbonization - The case for CO2 Neutral Fuels

My journey in the energy sector began in 2003 when I joined Repsol as part of its Retail division. Over the years, I have led diverse business units and corporate functions, witnessing firsthand how the industry has adapted to profound changes. In 2019, Repsol took a bold step, becoming the first oil and gas company to commit to net zero emissions by 2050.

When I took the role of Head of Repsol’s Brussels Office in 2021, navigating the Fit for 55 package and the RePower EU Plan, I truly grasped the complexity of the energy transition, driven by many layers of regulations and critical policy decisions. Working at the intersection of industry and policy has shown me one clear truth: we need bold yet practical solutions, and renewable fuels are one of them.

The power of renewable fuels

Renewable fuels (biofuels and e-fuels) are a game-changer for the transport sector. Made from a variety of feedstocks (such as used cooking oil, municipal and industrial waste rejects, amongst others), or a combination of CO2 and renewable hydrogen, they offer an immediate and practical way to reduce emissions, working hand-in-hand with electrification.

The big question: are they an effective means of achieving climate neutrality in transport? The answer is yes. These fuels operate within a circular carbon cycle—meaning the CO2 released when they are burned is equal to the amount absorbed during their production through natural processes like photosynthesis or by capturing CO2 for synthetic fuel production[1][2][3]. This is why it is crucial that they are recognized as CO2 neutral fuels in relevant legislation.

The best part is that they are not a futuristic concept but a tangible technology that is already being deployed, as they are compatible with the current vehicle fleet and existing infrastructure. In fact, Repsol already operates over 600 service stations in the Iberian Peninsula that supply 100% renewable fuels. You can start using them in your car today. By 2030, we are set to produce over two million tons, positioning us as a leader in Spain and Europe.

So, why aren’t these fuels getting the attention they deserve? Despite their potential to reduce net CO2 emissions, renewable fuels are being sidelined in the conversation on road transport. Regulatory barriers—such as restrictions on internal combustion engines—limit the ability of these fuels to complement other eligible technologies. We need a policy framework that allows all viable solutions to contribute to decarbonization.

The roadblocks to progress

The International Energy Agency’s 2024 Renewables Market Report underscores the urgency: while renewable fuels are critical to the energy transition, their growth lags behind expectations and urgently requires strong policy support. Renewable fuels can drive transport decarbonization today, but they need the right support to scale up.

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