Romania's Petrom and Romgaz to capture and store 20% of EU's 50 mln tonnes CO2 target

Romania's companies OMV Petrom (BVB: SNP) and Romgaz (BVB: SNG) are in second and third place, respectively, in the top European companies with the highest obligations in the construction of carbon dioxide (CO2) storage facilities, the European Commission established on May 21, within the framework of the "Net 0 2030" decarbonization plan, according to Economedia.ro. It's a target set based on past national hydrocarbon production and will be backed with financial support.

"By combining their industrial know-how with faster-permitting processes and strong financial support – including from the ETS-funded Innovation Fund – we can make substantial progress in advancing decarbonization and industrial modernization in Europe," explained Kurt Vandenberghe, European Commission Director-General for Climate Action.

For the two Romanian companies, a quota of 9 million tons of CO2 was established last year as a storage obligation until 2030. It is the second largest national quota in the EU, after that of the Netherlands, with the entire Union committing to storing at least 50 million tons underground.

The reason Romanian hydrocarbon-producing companies (not the country itself) have such a high share is related to the past activity: Romania has a 150-year tradition of hydrocarbon extraction.

A number of 44 European companies are required to ensure operational CO2 injection capacity by December 31, 2030, in geological storage sites authorized under the Carbon Capture and Storage (CCS) Directive.

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