OMV Petrom, the largest integrated energy producer in Southeast Europe, has committed approximately EUR 750 million to transform its Petrobrazi refinery into the region’s first major producer of sustainable fuels. The company has made the final investment decision to construct a SAF/HVO facility, along with two green hydrogen production units, to support biofuel production.

Christina Verchere, CEO of OMV Petrom, stated, “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. 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, emphasised, “Together with electro-mobility, biofuels are the answer to low carbon transport. 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 fewer carbon emissions. We want to continue being our customers’ first choice by offering them the products they need.”

SAF/HVO Production Facility

The investment for the SAF/HVO unit amounts to EUR 560 million. The plant will have a production capacity of 250 kt/year, producing SAF and HVO, along with by-products like bio-naphtha and bio-LPG, which are used in the chemical industry. The high flexibility of the installation allows adjusting the product mix according to market demand and 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 Production

The investment for the two green hydrogen units is estimated at EUR 190 million, with up to EUR 50 million from European funds through the National Plan for Recovery and Resilience. OMV Petrom and the Ministry of Energy signed the financing contracts earlier this year. These units will have a total capacity of 55 MW, producing approximately 8 kt of green hydrogen annually. Integrating green hydrogen into sustainable fuels like SAF and renewable diesel will result in at least a 70 percent reduction in CO2 emissions compared to conventional fuels.

Certification and Raw Material Access

Petrobrazi is the first refinery in the country certified to produce SAF and HVO through the co-processing of biological raw materials. To ensure a reliable source of raw materials for biofuel production, OMV Petrom has acquired a 50 percent 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 annually from sectors such as hospitality and retail.

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12th June 2024