Repsol is targeting to produce up to 400,000 tonnes of sustainable aviation fuel (SAF) by 2027, according to a statement made by the company during their Q4 earnings call.

“I think that being producing technically potential 400,000 tonnes a year of SAF in 2027, it seems to me that could be realistic,” said Josu Jon Imaz, CEO, Repsol.

The company is planning to become the leading SAF supplier in Iberian peninsula which mainly includes Spain and Portugal. However, they acknowledge this target depends on market demand and regulatory factors.

Repsol sees their existing facilities in Cartagena and Puertollano playing a key role in achieving their SAF production goals.

The Cartagena plant could potentially produce 220,000 tonnes of SAF annually, while the Puertollano plant could contribute an additional 80,000 to 100,000 tonnes. They are also exploring the potential of using their hydrotreated vegetable oil (HVO) production for SAF, though further technical evaluation is needed.

Madrid-based multinational energy and petrochemical company believes in the future of SAF as a solution for reducing emissions in the aviation sector, despite ongoing discussions about alternative approaches like restricting short-distance flights.

The company said that they believe mandates for SAF use are likely to come, and they support the European push for such regulations. However, they emphasise the need for global coordination to avoid situations where airlines would simply refuel in regions with less stringent rules.

Ultimately, Repsol acknowledges that market demand will be a determining factor in their actual SAF production. They may need to adjust their production mix based on regulatory incentives and customer needs, potentially producing more HVO if SAF demand falls short of their 2027 target.