OMV Petrom Allocates €750 Million Investment at Petrobrazi for SAF

OMV Petrom, the leading integrated energy producer in Southeast Europe, is set to invest around EUR 750 million at Petrobrazi, converting the refinery into the primary producer of sustainable fuels in the region. The company has confirmed its final investment decision to construct a SAF/HVO facility alongside two green hydrogen facilities, which will be integral to biofuel production.

Christina Verchere, CEO of OMV Petrom, stated, "As we advance with our transformation, including our new renewable power endeavors, we are now decisively advancing the decarbonization of transportation in Romania. In total, we are allocating EUR 11 billion by 2030 to reshape the company for a future with lower carbon emissions, both within Romania and across the region."

Radu Caprau, OMV Petrom Executive Board Member overseeing Refining and Marketing, expressed, "In conjunction with electro-mobility, biofuels represent the solution for achieving low carbon transportation, and we anticipate a progressive rise in demand for these alternatives. Through the investments unveiled today, we aim to substitute imports with domestically produced biofuels in Romania. This translates to enhanced product reliability and reduced carbon footprints for our customers. Our objective is to remain the preferred choice for our customers in the future by delivering the essential products they require."

The investments in this unit total EUR 560 million. The facility will boast a production capacity of 250 kt/year, encompassing SAF and HVO, alongside by-products such as bio-naphtha and bio-LPG, utilized in the chemical industry. The installation's remarkable flexibility enables adjustments to the product mix based on market demand and the available feedstock blend. The plant is expected to consume approximately 11 kt of hydrogen annually, with a significant portion sourced from the two new green hydrogen production units.

The funding for the two green hydrogen units totals around EUR 190 million, with up to EUR 50 million obtained from European funds through the National Plan for Recovery and Resilience (NPRR). OMV Petrom and the Ministry of Energy inked the financing agreements earlier this year.

The combined capacity of the two units will reach 55 MW, aiming for an annual production of green hydrogen at approximately 8 kt. The integration of green hydrogen into sustainable fuels like sustainable aviation fuel and renewable diesel is projected to yield a minimum 70% reduction in CO2 emissions compared to traditional fuels.

Petrobrazi stands as the initial refinery in the nation accredited for SAF and HVO production via the co-processing of organic feedstocks.

To secure a reliable supply of raw materials for biofuel production, OMV Petrom has obtained a 50% interest in "Respira Verde," a prominent entity in collecting discarded cooking oil across Romania. "Respira Verde" gathers up to 10 kt of used cooking oil annually from various sectors, including hospitality (hotels, restaurants), and retail.