OMV Petrom invests ~EUR 750 million at Petrobrazi to become the first major producer of sustainable fuels in Southeast Europe

• OMV Petrom builds a plant for the production of sustainable aviation fuels (SAF) and renewable diesel (HVO[1]) and two plants for the production of green hydrogen
• Starting in 2028, the company can supply around 250 kt/year of sustainable fuels

OMV Petrom, the largest integrated energy producer in Southeast Europe, will invest approximately EUR 750 mn at Petrobrazi to transform the refinery into the first major producer of sustainable fuels in the region. The company has made the final investment decision to build a SAF/HVO facility along with two facilities for green hydrogen which will be used in the production of biofuels.

Christina Verchere, CEO OMV Petrom: "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. In total, by 2030, we’re committing EUR 11 billion to transform the company for a lower carbon future, both in Romania and the region."

Radu Căprău, OMV Petrom Executive Board Member responsible for Refining and Marketing: "Together with electro-mobility, biofuels are the answer to low carbon transport, and we expect a gradual increase in demand for these products. Thanks to the investments we announced today, we will be able to replace imports with biofuels produced here in Romania. For our customers, this means product certainty and less carbon emissions. We want to continue to be our customers’ first choice in the future by offering them the products they need".

SAF/HVO production facility

The investments for this unit amount to EUR 560 million.  The plant will have a production capacity of 250 kt/year, of SAF and HVO as well as by-products like bio-naphtha and bio-LPG, which are used in the chemical industry. The high flexibility of the installation allows adjusting the products mix according to market demand and the available feedstock mix. The plant will have an annual consumption of ~11 kt of hydrogen, most of which will be provided by the two new green hydrogen production units.

Green hydrogen for the production of sustainable fuels

The investment for the two green hydrogen units is estimated at ~EUR 190 mn, of which up to EUR 50 mn is from European funds, through the National Plan for Recovery and Resilience (NPRR). OMV Petrom and the Ministry of Energy signed the financing contracts at the beginning of this year.

The two units will have a total capacity of 55 MW, with a total annual production of green hydrogen estimated at around 8 kt. Integrating green hydrogen into sustainable fuels, such as sustainable aviation fuel and renewable diesel, will result in at least a 70% reduction in CO2 emissions compared to conventional fuels.

Petrobrazi is the first refinery in the country certified to produce SAF and HVO through the co-processing of biological raw materials.

In order to ensure access to a safe source of raw materials to produce biofuels, OMV Petrom has acquired a 50% stake in "Respiră Verde", a leader in the collection of used cooking oil in Romania. "Respiră Verde” collects up to 10 kt of used edible oil per year from economic agents in fields such as the hospitality industry (hotels, restaurants) and retail.

About OMV Petrom 

OMV Petrom is the largest integrated energy producer in Southeastern Europe, with an annual Group hydrocarbon production of approximately 41 million boe in 2023. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency gas-fired power plant. The Group is present on the oil products retail market in Romania and neighbouring countries through approximately 780 filling stations under two brands – OMV and Petrom.

OMV Petrom is a company in which, as of end-2023, Romanian shareholders hold over 43% of the shares (of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 22.5% are owned by pension funds in Romania, to which are added almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.2% stake in OMV Petrom, and the remaining 5.6% are held by other foreign investors. Of the total shares of OMV Petrom, 28.1% represents the free float on the Bucharest Stock Exchange.

OMV Petrom is one of the largest contributors to the state budget, with approximately 42 billion euro in taxes and dividends paid between 2005 and 2023. During the same period, the company invested approximately 18 billion euro.

Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007 and 2023, the company has allocated around 160 million euro to develop communities in Romania, focusing on environmental protection, education, health, and local development.

On July 29th, 2020, OMV Petrom announced its support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD) regarding risks and opportunities on climate change. OMV Petrom annually reports on the progress made in implementing these recommendations.

[1] HVO – Hydrotreated vegetable oil is also known as renewable diesel, green diesel or biodiesel. This is a low-carbon fuel, produced by processing renewable residual lipids.