Repsol launches $600 million partner search operation in the US

Repsol prepare mega asset rotation operation for large US renewable energy package. Energy group is looking for an investor to be included as a partner in a portfolio with a capacity of about 800 megawatts (MW) at the operational stage or in the near future Get into formation. 100% estimate is around 600 million. euros, indicate sources in the renewable energy market.

These will include, among other things, photovoltaic projects. Jicarilla (145 MW) and Fry (637 MW). The idea is to bring this package of services to market. in the second half of the year. Repsol is still finalizing the proposal, which could change between now and July depending on market conditions or the level of development of other assets that may be included.

Repsol is considering possible advisory banks, without making a final decision. The rotation model in the US differs from that typically followed in other markets such as Spain. Instead of maintaining a controlling stake of more than 50%, Repsol will retain exactly the percentage that in the US allows it to deconsolidate its debt.

The United States has always been a key market when Repsol was purely an oil company. Now that Repsol is moving towards multi-energy, it is largely due to the country’s renewable energy potential.

From Hecate to ConnectGen

Repsol entered the US renewable energy market by purchasing 40% of Hecate Energy in 2021.. With this agreement, Repsol now manages 800 megawatts of capacity from Jicarilla and Frye, two star projects from which the search for partners will begin.

The company also is building the Forpost (629 MW) and Pinnington (825 MW) projects. In September 2023 Repsol acquired ConnectGenwhich provides a new portfolio of onshore wind and solar photovoltaic assets in various stages of development with a capacity of 20,000 MW. Repsol’s goal in the US is to achieve an installed capacity of 2,000 MW in 2025 and 8,000 MW in 2030.. But for this it is necessary to attract partners who will provide financial strength, which will allow it to grow without excessive debt and help distribute the risks of developments.

Repsol’s renewable energy division is part of its energy division. Low carbon production. Since its launch in 2018, its installed capacity has reached 3,000 MW. in Spain, USA, Chile, Italy and Portugal and a portfolio of projects with a capacity of 60,000 MW.

The company has not only acquired renewable platforms in the US. This was also done using Huge portfolio of Asterion Energies projects with a capacity of 7,700 megawatts in Spain and other European countries. During 2024-2027, Repsol plans to invest between 3,000 and 4,000 million euros net. (not counting partner contributions) pdevelop its portfolio of renewable energy projects and achieve an installed capacity of 9,000 to 10,000 MW by 2027.

50% will be in the Iberian Peninsula and 30% in the USA. following the consolidation of the entire Hecate and ConnectGen portfolio. For its part, the company plans expand its presence in Chile and Italywith a total installed capacity of 1500 MW in 2027.

Josu John Imaz, CEO of Repsol: In May last year, during the presentation of the results, it was already announced that the group would begin the process of searching for a partner in the United States after successfully rotating assets in this way in Spain.

In Spain, the energy company has already entered into this type of alliance with Pontegadea, the investment arm of Amancio Ortega.

founder of Inditex and the largest fortune in Spain, including him as a partner in several of his green projects with a 49% stake.

In addition to Pontegadea, Repsol has attracted other partners such as Renewable Energy Infrastructure Group (TRIG) at the Valdesolar photovoltaic power plant (Badajoz).

From credit to Aramco

Except, entered into an alliance with Crédit Agricole Assurances and EIP in the field of renewable generation to accelerate its growth.. Two years ago, the two organizations formally entered into an agreement with Repsol to log in directly with 25% to Repsol Renovablesgreen energy matrix of the group, in an operation that valued this company at $4.383 million. Recently the Saudi giant Aramco was interested in joining this subsidiary., as EXPANSIÓN progresses. The difficulty is to set the price and determine whether Crédit and EIP will take the opportunity to sell or accept Aramco as a partner. Santander is working with Repsol to analyze the options.