Repsol enters the U.S. renewables market with the purchase of 40% of project developer Hecate Energy

• Repsol has signed an agreement to acquire 40% of Hecate Energy, a U.S.-based PV solar and battery storage project developer.
• This transaction is Repsol's first foray into the U.S. renewables market. It complements the company's capabilities and portfolio and adds a solid platform with strong growth potential.
• Hecate Energy has a portfolio of more than 40 GW of renewable and energy storage projects under development. Of these, 16.8 GW are solar projects at advanced stages of development and 4.3 GW of batteries for energy storage.
• The agreement is fully aligned with Repsol's Strategic Plan and represents a substantial step forward in the achievement of the company's targets for low-emission generation capacity and internationalization of this business by 2025.
• The U.S. renewables market is one of the largest, most attractive and fastest-growing in the world. Hecate Energy has a privileged position in the country, a management team with extensive experience, and a successful track record in the development and commercialization of projects.
• Maria Victoria Zingoni, Repsol's Executive Managing Director of Client and Low-carbon Generation, said: 'With this acquisi-tion we enter the U.S. renewable market with the best possible partner and advance our strategic objective of becoming a global low-emissions operator. We continue to demonstrate our commitment to multi-energy and move forward with the transformation of Repsol into a net zero emissions company'.

Repsol has signed an agreement to acquire 40% of Hecate Energy, a U.S. company specializing in the development of PV solar and battery projects for energy storage. Thanks to this transaction, the Spanish multi-energy company advances its objectives of geographic diversification of its renewables business, complementing its capabilities, improving its portfolio, and adding a solid platform with strong growth potential.

The acquisition of a stake in Hecate Energy is Repsol's first foray into the U.S. renewables market, one of the world's largest, most attractive, and fastest-growing. Once the conditions for this purchase have been met, Repsol will become a developer and future operator of renewable projects in a country with a favorable business environment in this sector.

Hecate Energy, based in Chicago, has an extensive portfolio of renewable projects totaling more than 40 gigawatts (GW). Of these, 16.8 GW are PV solar projects and energy storage associated with these as-sets, all at advanced stages of development. The company also participates in Hecate Grid, a battery platform for energy storage with a capacity of 4.3 GW.

The agreement will make Repsol a significant player in the US solar and battery storage development market through its participation in Hecate Energy's renewable project development business. The company will also have the option of acquiring Hecate Energy's outstanding shares three years after the closing of this transaction.

Most of Hecate Energy's assets are located in the U.S. electricity markets ERCOT, WECC, and PJM that are projected to grow substantially in the coming decade due to the emissions reduction objectives set in the respective states. Its portfolio of PV solar projects under development is one of the largest in the country, and it is geographically diversified. Its management team has extensive experience and a suc-cessful track record in project development in the US, which will complement Repsol's capabilities in this area. Founded in 2012, the company has so far sold 2.6 GW of renewable projects.

The transaction represents a substantial leap forward for Repsol towards achieving the goals of low-emission generation capacity and the internationalization of this business set out in the company's 2021-2025 Strategic Plan. The plan outlines the target of reaching a generation capacity of 7.5 GW in 2025 and 15 GW in 2030 and, thus, becoming a competitive, international player in the renewables sector.

The United States is the second renewables market that Repsol enters outside Spain, following the signing in July 2020 of an agreement with the Ibereólica Renovables Group. This gave Repsol access to a portfolio of projects in Chile in operation, construction, or development, with more than 1,600 MW until 2025 and the possibility of exceeding 2,600 MW by 2030. The company also participates in WindFloat Atlantic, an offshore semi-submersible floating wind farm off the northern coast of Portugal with a total installed capacity of 25 MW.

María Victoria Zingoni, Repsol's Executive Managing Director of Client and Low-carbon Generation, said: 'With this acquisition we enter the U.S. renewable market with the best possible partner and advance our strategic objective of becoming a global low-emissions operator. We continue to demonstrate our com-mitment to multi-energy and move forward with the transformation of Repsol into a net zero emissions company.'

On behalf of Hecate Energy, Chairman David Tohir said: 'With this partnership, Hecate Energy continues to position itself as a leading renewable energy developer in the United States. We are pleased to align ourselves with a major global energy company that is leading the transition to a multi-energy future.'

Repsol has been present in the United States for more than two decades. The country is a key region for the company, which has upstream assets in Pennsylvania, Texas, the Gulf of Mexico, and Alaska. In addition, Repsol is involved in the marketing and trading of natural gas, crude oil, and products. For more than 10 years, it has also been selling lubricants for motorcycles and the industrial sector. Through these activities, Repsol employs more than 500 people locally.

Headquartered in Chicago, Illinois, Hecate Energy is a leading developer of utility scale renewable pro-jects. Founded in 2012 by a team of industry veterans, the company has developed and built hundreds of megawatts of renewable generation assets that provide green power to utilities, cities, universities, and major corporations.