OMV Petrom signs EUR 700 mln contract for pre-treated used cooking oil to process after 2028

OMV Petrom (BVB: SNP) has signed a new purchase contract for pre-treated used cooking oil with Astra Bioplant of Bulgaria, a company part of the Bulmarket group owned by Bulgarian businessman Stanko Stankov, SNP announced in a note to investors.

In June 2024, OMV Petrom signed a similar contract with Romanian edible oil producer Expur.

The Romanian company thus secured more than 80% of the feedstock for the first eight years of production at the SAF/HVO plant during the execution phase.

In February this year, OMV Petrom started construction of new facilities at its Petrobrazi refinery to produce sustainable aviation fuel (SAF) and biodiesel (hydrotreated vegetable oil, HVO), the company announced.

The EUR 750 million investment will give OMV Petrom an annual production capacity of 250,000 tonnes, making it the first major producer of sustainable fuels in Southeast Europe.

The contract with Bioplant was concluded for a period of five years, with the possibility of an extension for three additional years, with deliveries to begin in 2028.

Pre-treated used cooking oil is the raw material for producing sustainable aviation fuel (SAF), which will be processed in the SAF/HVO plant currently under construction at the Petrobrazi refinery.

Pricing is based on a formula that is indexed to an international quotation.

The maximum total quantity of the contract is 0.6 million tonnes, with an estimated value of over EUR 700 million at current market quotations.

Astra Bioplants Ltd is a Bulgarian company, the largest producer of biodiesel in the region, and a longtime partner of OMV Petrom.

(Photo: Brand portal OMV Petrom)