Técnicas Reunidas, a global engineering company, has signed a Memorandum of Understanding (MoU) with IFC, the private sector arm of the World Bank, to help accelerate the decarbonization of Eastern European economies. The collaboration seeks to facilitate the transition to low-carbon technologies and promote the decarbonization of carbon intensive industries.
Under the MoU, IFC and Técnicas Reunidas will work together to identify and develop viable projects and partners that will contribute to accelerating the energy transition from fossil fuels to low carbon and clean fuels in specific countries. The focus industries include steel, cement, aluminum, chemicals, glass, and transportation.
The solutions to be explored will encompass various low carbon technologies along the hydrogen value chain, including green ammonia and e-methanol, as well as biofuels, bio chemicals and biomethane and carbon capture for large carbon emitters.
The countries included under the MoU are Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Poland, Romania, Serbia, and Ukraine.
These countries emit more than 800 million tons of carbon dioxide every year, around 30% of the total emissions of the European Union. They are expected to require more than €35 billion of investments in sustainable fuels, low carbon hydrogen and derivatives and carbon capture units.
In these countries, there are close to 400 assets that emit more than 200 kilo tons of carbon dioxide per year. The main emitters are the cement, iron and steel and chemical industries, an important part of the scope of the MoU.
For IFC, the MoU is a step forward in its strategy to invest in projects that will make material contributions to the decarbonization of key industries in emerging markets. As part of the collaboration with Técnicas Reunidas, IFC expects to support the early development of climate-smart projects and prepare them for investment opportunities, with a view to potentially providing and mobilizing financing to build the projects.
For Técnicas Reunidas, project development is part of its strategy for the energy transition, known as “track”. Through track, Técnicas Reunidas aims to maximize its opportunities and accelerate its implementation in the forthcoming low carbon economy.
Técnicas Reunidas’ expertise in the engineering and construction of strategic and complex projects, combined with IFC’s expertise in financing this type of investments, will facilitate the implementation of these projects.
Maria Paulina Mogollon, the Manager for Manufacturing, Agribusiness, and Services (MAS) Upstream and Advisory in Europe, Latin America, and the Caribbean, at IFC said: “IFC is looking forward to working with Técnicas Reunidas on identifying viable opportunities that will help to combat climate change that could be developed and implemented with credible partners. Técnicas Reunidas’ technical and engineering expertise, combined with IFC’s emerging market experience and footprint and global industry expertise, will bring significant value to investors, accelerating the green transition of hard-to-abate industries in the Eastern European region.”
Eduardo San Miguel, CEO of Técnicas Reunidas, stated, “We are pleased to join forces with IFC to accelerate the decarbonization of Eastern European countries. This partnership represents a huge opportunity with significant decarbonization potential. With track, we will increase our chances in these countries, that will require large investments for their decarbonization.”
The Pinsent Masons team advising Técnicas Reunidas included Hermenegildo Altozano, Juan de Navasqüés and Carlos Angulo.