Repsol has reached an agreement with Pontegadea, one of the world's leading private investment firms, to become a partner in the Delta wind farm, which has been fully operational since last March and has a total installed capacity of 335 megawatts (MW).
Under the agreement, signed today in Madrid, Pontegadea invests €245 million to take a 49% stake in Delta, a wind farm located in the province of Zaragoza, in the first operation in the renewable sector of this group.
With this agreement, which values Delta at €500 million, Repsol completes its business model in renewables and ensures its objective of obtaining double-digit returns on its investments in this sector. Pontegadea's entry into Delta's shareholding reinforces Repsol's position as an industrial operator and demonstrates the validity of its growth model in renewables based on the development of projects from the initial stages through to commissioning.
"Having Pontegadea as a partner in Delta confirms the quality of our assets and will allow us to accelerate our growth in renewables, within the framework of an efficient and sustainable energy transition, and with the goal of being a zero net emissions company by 2050," said Repsol's CEO, Josu Jon Imaz.
Roberto Cibeira, CEO of Pontegadea, said that "this operation, with a solid and reliable partner such as Repsol, is part of Pontegadea’s overall investment strategy and strengthens the environmental commitment that accompanies all the activities in our portfolio, whether in the energy sector, real estate asset management or textile distribution".
Strong investment interest
The sale of a minority stake in Delta has aroused great interest among the international investment community, with top-tier players submitting bids in the final phase of a procedure that began in June.
Repsol acquired Delta, its first wind project in Spain, in June 2019 and began construction in December 2019. In less than 24 months, despite a context marked by the coronavirus pandemic, the company has been able to build, start production and now value a stake in this asset, which consists of eight farms and a total of 89 wind turbines.
Delta will produce 992 GWh of 100% renewable energy a year, equivalent to the average annual consumption of 300,000 homes, and will prevent the emission of one million tons of CO2 a year.
More ambition in renewable energy
During Repsol’s Low Carbon Day dedicated to the energy transition that took place on October 5, Repsol announced an increase in its renewable generation and emissions reduction targets, as well as an increase in investment in low-carbon solutions to accelerate its transformation through 2030.
The company will increase its planned investments in low-carbon projects by €1 billion for the period 2021-2025, to a total of €6.5 billion, compared with the €5.5 billion established in its Strategic Plan. Thus, investment earmarked for low-emission initiatives will account for 35% of the group's total spending in the period 2021-2025 and the capital employed for these purposes will be 45% in 2030.
Renewable electricity generation is one of the pillars of Repsol's decarbonization model. Recently announced targets represent a 60% increase in installed renewable generation capacity by 2030, to 20 GW (compared with the 12.7 GW announced in the Strategic Plan). By 2025, the new installed capacity target stands at 6 GW, which compares with 5.2 GW in the roadmap presented in November 2020.
The company plans to continue with the organic growth of this business thanks to the development of a portfolio of projects in operation and development in OECD countries, reinforced after the joint venture signed in Chile with Ibereólica Renovables in 2020, and the acquisition of 40% of the company Hecate Energy in the United States, specialized in the development of photovoltaic and energy storage projects. Repsol plans to end the year with 1.7 GW of installed renewable capacity and another 4.7 GW in projects under construction or development.
The Pontegadea Group is formed by the group of companies owned by Amancio Ortega Gaona. Pontegadea controls a majority stake in Inditex -with 59.29% of the capital- and is one of the world's leading private real estate asset managers, with a portfolio of prime assets located in Europe, America and Asia. Pontegadea also has other financial investments and stakes in infrastructure companies.