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Repsol to produce renewable methanol in Tarragona, Spain

London, February 01, 2025, (Oilandgaspress) –––Repsol’s Board of Directors today gave the green light to invest in the Ecoplant, a pioneering project in Europe to transform urban waste into renewable fuels and circular products, adding a solution for reducing CO2 emissions in the transport sector, while at the same time promoting the circular economy.

Located in Tarragona, this facility —expected to receive an investment of over €800 million— will become the first plant in Europe to produce renewable and circular methanol from waste through gasification, the world’s most advanced waste valorization process. This cutting-edge technology, developed by Enerkem – a technology company in which Repsol is a partner – gives a second life to waste that would otherwise end up in landfills or be incinerated.

The new plant will have the capacity to process up to 400,000 tons of municipal solid waste per year and turn them into 240,000 tons of renewable fuels and circular products. The renewable methanol originates from organic waste, while the circular products come from non-organic waste, such as non-recyclable plastics.

The start-up of the plant, scheduled for 2029, will result in the creation of 340 direct, indirect, and induced jobs, as well as some 2,800 jobs during the construction phase. The Ecoplant will be integrated into Repsol’s industrial complex in Tarragona to take advantage of existing infrastructures and accelerate the transformation of the center into a multi-energy hub that will continue to manufacture essential products for society, such as renewable fuels and circular materials. This investment is a clear commitment by Repsol to maintain industrial employment in Spain and to continue generating wealth in the surrounding area.

The Ecoplanta has been selected by the European Union, from among more than 300 projects, to receive funding from the Innovation Fund program, due to its high potential for reducing emissions and its innovative nature and for being unique in Europe. According to the European Commission, the Ecoplanta will reduce the equivalent of 3.4 million tons of CO2 in greenhouse gas (GHG) emissions during the first ten years of operation.

A solution to decarbonize transport

The European Union has designed a pathway to gradually reduce the carbon intensity of energy used in maritime transport by 40% by 2030, from 2018 levels, and by 75% by 2050, compared to 2020 levels.

At present, the most efficient options for meeting these objectives are renewable diesel – which Repsol already manufactures at its Cartagena plant – and renewable methanol that will be manufactured at the Ecoplant. These technologies are complementary to meet the demand of maritime transport and are technologically mature for implementation, compared to other alternatives such as renewable hydrogen, ammonia, or the electrification of marine propulsion systems, which still require development and large investments in fleet renewal and fuel distribution.

Renewable methanol will also be used for road transport, as a raw material to produce renewable gasoline and diesel, as well as for the production of sustainable aviation fuel (SAF). Additionally, methanol is very versatile in the chemical industry, with multiple uses in the automotive and construction industries and in applications in sectors as diverse as healthcare, food, and electronics.


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