OMV Petrom invests EUR 750 mln at Romanian refinery to become region’s first major producer of sustainable fuels

Integrated energy producer OMV Petrom said it would invest roughly EUR 750 million at Petrobrazi to transform the refinery into the first major producer of sustainable fuels in Southeast Europe. The company will build a plant for the production of sustainable aviation fuels (SAF) and renewable diesel (HVO) and two facilities for the production of green hydrogen.

“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,” said Christina Verchere, CEO of OMV Petrom.

In his turn, Radu Caprau, OMV Petrom Executive Board Member responsible for Refining and Marketing, commented: “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.”

The SAF/HVO production facility will require investments of EUR 560 million. It 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, OMV Petrom said.

The plant will have an annual consumption of around 11 kt of hydrogen, most of which will be provided by the two new green hydrogen production units.

The investment for the two green hydrogen facilities is estimated at roughly EUR 190 million, of which up to EUR 50 million 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. According to the company, 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,” the press release says.

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.

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.