Swiss energy commodities trading company Gunvor is set to acquire a 75% stake in Bahía De Bizkaia Electricidad (BBE) facility, a 785MW combined cycle power plant in Bilbao, Spain.

Gunvor will acquire the majority stake from BP Gas Marketing (BPGM), a wholly owned subsidiary of BP International (BPI), engaged in producing and distributing oil and natural gas.

The transaction represents the Swiss energy company’s first investment in a power generation asset and supports its commitment to developing Spain’s energy sector.

Also, it builds on Gunvor’s existing investments in two biofuel plants in Huelva and Álava, Spain.

The acquisition is expected to be completed in the first quarter of 2024, subject to customary regulatory approvals and closing conditions.

Gunvor portfolio global head Shahb Richyal said: “BBE also represents an important step as we continue to expand our presence in gas and power trading. We look forward to welcoming BBE’s team into Gunvor’s growing global family.”

BP Spain country head Andrés Guevara said: “This decision reflects BP’s strategy of transforming from an International Oil Company (IOC) into an Integrated Energy Company (IEC) that aims to become net zero by 2050 or sooner.

“We remain committed to this transformation in Spain, a key market for the bp group, as we reorient our investments towards transition growth engines such as EV charging, bio-energy, renewable power and hydrogen.”

Gunvor is a key player in the global energy markets and has more than 100 employees in Spain and a marketing and trading office in Madrid.

The energy trading company is committed to reducing Scope 1 and 2 emissions by 40% by 2025 and tracking and reporting Scope 3 emissions.

It intends to retain BBE’s current employees and management and will integrate the combined cycle power plant into its sustainable operations.

Furthermore, BP, BBE and Gunvor are expected to work together to deliver the safety and success of the transition process in the coming few months.

European Gas & Power Trading head Aldo Della Valle said: “Gunvor has an established track record of successfully integrating and aligning industrial assets with our core physical energy trading business.

“With BBE, we hope to similarly align our trading in natural gas/LNG and power with the plant, so that it continues to contribute positively to Spain’s economy over the long-term, while upholding our energy transition priorities.”