Repsol S.A. REPYY, a Spanish multi-energy company, has entered into a ground-breaking partnership with Honeywell International HON to create new, innovative pathways for the production of biofuels and circular materials. As part of the collaboration, the companies will focus on leveraging Honeywell’s advanced technologies to transform waste materials like fats, oils, greases, biomass and solids into biofuels and advanced chemicals at Repsol’s refineries, with a possibility of incorporating these methods into Repsol’s facilities.

The collaboration is aimed at commercializing Honeywell’s innovative technologies at Repsol’s refineries to produce a wide variety of biofuels, including sustainable aviation fuel (SAF) and renewable diesel. The existing assets of the refineries will be utilized for the process. This strategic partnership aligns with Honeywell’s commitment to reducing carbon emissions and contributes to the global energy transition process. The company plans to achieve carbon neutrality at its facilities by 2035.

Repsol is also considering the implementation of Honeywell’s UpCycle Process Technology, which can convert waste plastic into Honeywell Recycled Polymer Feedstock. The Honeywell Recycled Polymer Feedstock can be further used for developing new plastic. The technology is versatile and capable of recycling a diverse range of plastics, including flexible, multilayered packaging and polystyrene. When combined with other recycling techniques, this technology has the potential to aid in recycling nearly 90% of waste plastics.

REPYY is committed to achieving the net-zero emissions target by 2050. The company emphasized that renewable fuels and recycling of plastics are important components of its strategy to achieve its net-zero emission targets. The management believes that its collaboration with Honeywell and adoption of its cutting-edge technologies should enable Repsol to reduce its carbon footprint. The partnership should also help Repsol to establish itself as a leading firm in the production of renewable fuels and hydrogen by 2030.

Honeywell has highlighted that it seeks to foster collaborations to render impactful solutions aimed at reducing greenhouse gas emissions through biofuel production. Its collaboration with Repsol should enable the application of new technologies for the production of biofuels and advanced materials, while also lowering carbon emissions.

Earlier in 2024, Repsol had partnered with Bunge Global BG to meet the growing demand of low-carbon feedstock, which is used in the production of renewable fuels. REPYY acquired 40% stake in three of Bunge’s oil and biofuels plantin the Iberian Peninsula. The three plants are located in Bilbao, Barcelona and Cartagena, which lie close to Repsol’s refineries.

The acquisition was in line with Repsol’s strategy to reduce emissions from the transportation sector. The company plans to provide 100% renewable fuel pumps across its service station network in Spain. At present, 120 stations offer 100% renewable fuel, and Repsol plans to increase the count to 600 by the end of 2024.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Honeywell International Inc. (HON) : Free Stock Analysis Report

Bunge Global SA (BG) : Free Stock Analysis Report

Repsol SA (REPYY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research