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. 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.
This is why we urge EU policymakers to send a strong political signal to enable their market deployment. With 97% of Europe’s goods and people moved by liquid fuels, mostly manufactured in European industrial facilities, the role of these fuels in our energy transition cannot be overstated. At Repsol, we call for the development of a comprehensive EU Strategy for the Transition of Liquid Fuels for all modes of transport, building on existing regulation, with the required improvements to unlock all potential private investment in local production.
Tackling misconceptions about renewable fuels
Misunderstandings around renewable fuels are still common, especially concerning the sustainability of feedstocks and biomass availability. It is important for the industry to address these concerns clearly. The production of these fuels is carefully regulated under strict rules to ensure sustainable sourcing of raw materials and verified emissions reductions, in accordance with the Renewable Energy Directive. When it comes to biomass—like used cooking oil or agricultural waste—studies show that Europe has more than enough sustainable biomass to meet the growing demand for renewable fuels (Imperial College, 2022). By 2030, Europe's biomass could support biofuel production far beyond current projections, ensuring that renewable fuels can scale up to decarbonize road, aviation, and maritime transport.
A direct impact on strategic autonomy, competitiveness and industrialization
Importantly, renewable fuels strengthen the EU’s strategic autonomy by reducing reliance on imported fossil fuels and critical minerals. They offer the opportunity for stable, locally sourced energy supply, reducing geopolitical risks while fueling industrial growth and job creation across Europe. Supporting these fuels means ensuring Europe remains competitive in the global energy market.
On the contrary, excluding these fuels from road transport risks undermining Europe’s competitiveness. Fuel producers can’t manufacture renewable fuels solely for aviation and maritime sectors without underutilizing facilities, raising production costs and inefficiencies. Without a market for road transport, industries may relocate to regions with more favorable policies, increasing reliance on imports and putting tens of thousands of jobs at risk. Enabling economies of scale is critical to reducing production costs and ensuring Europe’s industrial future.
What needs to change?
As we refine the regulatory frameworks that will shape Europe’s energy future, we must ensure these fuels are positioned to deliver on their potential. This is about meeting climate targets whilst maintaining Europe’s global competitiveness. Here are the key policy steps that can unlock their role in the energy transition:
1. Ensure regulatory consistency: The definition of CO2 neutral fuels should be derived from the Renewable Energy Directive (Directive (EU) 2018/2001), to ensure consistency within the broader EU’s regulatory framework. Ensuring consistency is critical to avoid confusion and driving policies that support clean energy innovation.
2. Adopt a technology-neutral approach in relevant CO2 regulations: The upcoming review of the CO2 emissions Regulations for Light-Duty (LDV) and Heavy-Duty vehicles (HDV) should include CO2 neutral fuels (both biofuels and e-fuels) as key solutions for decarbonizing road transport. This would create a level playing field for all clean technologies, as highlighted in the Draghi Report on European competitiveness.
3. Recognize CO2 neutral fuels as zero-emissions: Vehicles running on 100% CO2 neutral fuels should be treated the same as electric vehicles in terms of tailpipe emissions, reflecting the fact that the CO2 emitted is neutralized during fuel production - either by absorbing CO2 from biomass through its natural growth (photosynthesis) or by capturing CO2 for synthetic fuel production.[1][2][3]
At Repsol, we are committed to playing our part in driving Europe's energy transition. We have invested an average of one billion euros a year in industry in Spain over the last fifteen years to modernize and transform our industrial oil refining and petrochemical complexes into multi-energy hubs that can progressively convert more renewable raw materials and waste into renewable products.
We want to continue working, in partnership with the EU’s ambitions, to put all our talent and technological and industrial capabilities at the service of a competitive energy transition committed to industry and employment in Europe.
We have the roadmap to take us forward.
