OMV Petrom to invest €750m to become first major sustainable fuel producer in Southeast Europe

OMV Petrom, the largest integrated energy producer in Southeast Europe, is set to invest approximately EUR 750 million at its Petrobrazi facility to become the region’s first significant producer of sustainable fuels. This initiative is a critical component of the company’s broader strategy to transition towards a lower carbon future.

Significant Investment in Renewable Energy

The investment will establish a SAF/HVO (Sustainable Aviation Fuel/Hydrotreated Vegetable Oil) facility, alongside two new units for green hydrogen production. These facilities are integral to OMV Petrom’s commitment to decarbonizing transport in Romania and the broader region. “We are moving forward with our transformation, in addition to our new renewable power projects, today we have taken a decisive step towards decarbonizing transport in Romania,” stated Christina Verchere, CEO of OMV Petrom. The company aims to invest EUR 11 billion by 2030 to transform its operations for a sustainable future.

OMV Petrom invests EUR 750 million in Petrobrazi to become Southeast Europe’s first major sustainable fuel producer, enhancing green hydrogen and biofuel capabilities.

Enhancing Biofuel Production and Self-Sufficiency

The SAF/HVO facility will cost EUR 560 million and is expected to produce 250 kt/year of biofuels and by-products like bio-naphtha and bio-LPG, which are crucial for the chemical industry. This investment not only enhances the refinery’s flexibility in product mix but also increases self-sufficiency by reducing the need for imported biofuels. Radu Căprău, OMV Petrom Executive Board Member, emphasized, “Thanks to the investments we announced today, we will be able to replace imports with biofuels produced here in Romania.”

Green Hydrogen as a Game Changer

The green hydrogen units, an investment of about EUR 190 million, will significantly contribute to producing sustainable fuels, with a production capacity of 55 MW and an estimated annual output of 8 kt of green hydrogen. This initiative is supported by up to EUR 50 million from European funds, marking a pivotal step in OMV Petrom’s strategy to integrate green energy sources.

Strategic Raw Material Acquisition

To secure a consistent supply of raw materials for biofuel production, OMV Petrom has acquired a 50% stake in “Respiră Verde,” a leading collector of used cooking oil in Romania. This acquisition ensures a steady input for their biofuel production processes, further enhancing the sustainability of their operations.

The Larger Impact

OMV Petrom’s investment not only signifies a substantial commitment to renewable energy but also positions the company as a pioneer in the sustainable fuel sector in Southeast Europe. This move is expected to have a significant positive impact on the environment, reducing CO2 emissions and promoting cleaner energy alternatives.