SPANISH OIL GIANT CEPSA TO INVEST NEARLY €8 BILLION ON GREEN

Cepsa, a top dog in the Spanish oil and gas sector, will be allocating nearly €8 billion towards their ‘Positive Motion’ strategy. This multifaceted strategy ultimately aims to shift the source of the company’s earnings, with a goal of generating over half of the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by 2030.

To accomplish this, the company will be implementing many green initiatives, the most notable of them being the renovation of over 3000 of Cepsa’s fuel stations. These renovations will include the addition of many new services such as restaurants and pharmacies, but will also stay true to the green initiative by providing Spain and Portugal’s electric vehicle drivers with recharging stations. Once completed, Cepsa’s network of electric vehicle charging stations will be the most expansive one in Spain and Portugal.

According to Cepsa’s website, the company also “aims to become a leader in green hydrogen and biofuels with its 2030 ‘Positive Motion‘ Strategy. Green hydrogen is hydrogen obtained using renewable energy sources, a practice that is much more eco-friendly than the more popularized methods that involve fossil fuels in the creation of hydrogen. Being a leader in biofuels would also help the company move to reduce its consumption of fossil fuels, as much of the scarce fossil fuels they consume would be replaced by biomass.

Cepsa’s green initiative is becoming a major part of the company’s business plan going forward. Their website is riddled with different ways in which the company is reducing their carbon footprint, using renewable energy sources, and even helping households do the same. Cepsa is in the process of installing solar panels at all of their stations, creating fuels that reduce emissions, and has begun offering a line of sustainable energy solutions for homes. 

Maarten Wetselaar — the company’s CEO — thinks that “Cepsa is small enough to move fast yet big enough to be a leader in creating a greener, more just and more sustainable economy.”. If Cepsa succeeds in implementing their green initiative, they could spark change in the oil and gas industry and serve as a role model for other multinational firms to do the same. 

 By: Luca Glickman