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Released June 18, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Romanian oil and gas major OMV Petrom (Bucharest) is to invest 750 million euro (US$805 million) to become the first major producer of sustainable fuels in southeast Europe.
The company will spend the money on a number of projects at its Petrobrazi Refinery, north of Bucharest, including the construction of a sustainable aviation fuels (SAF) and renewable diesel (HVO) plant and two plants for the production of green hydrogen. Starting in 2028, the company aims to supply around 250 kilotons per year of sustainable fuels. Petrobrazi is the first refinery in the country certified to produce SAF and HVO through the co-processing of biological raw materials.
"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," said Christina Verchere, chief executive of OMV Petrom. "In total, by 2030, we're committing 11 billion euro ($11.8 billion) to transform the company for a lower carbon future, both in Romania and the region."
It will spend an estimated 560 million euro (US$605 million) on the new SAF/HVO plant which will also make byproducts like bio-naphtha and bio-liquefied petroleum gas (LPG), which are used in the chemical industry. OMV said that in-built flexibility of the installation will allow for adjusting the product mix according to market demand and the available feedstock mix. The plant will have an annual consumption of about 11 kilotons of hydrogen, most of which will be provided by the two new green hydrogen production units.
Radu Căprău, OMV Petrom executive board member responsible for Refining and Marketing, added: "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. For our customers, this means product certainty and less carbon emissions. We want to continue to be our customers' first choice in the future by offering them the products they need..."
Investment in the two green hydrogen units is estimated at about 190 million euro (US$204 million), of which up to 50 million euro (US$54 million) has been provided by the European Union (EU) through the National Plan for Recovery and Resilience (NPRR). The two units will have a total capacity of 55 megawatts (MW), with a total annual production of green hydrogen estimated at around 8 kilotons. OMV estimated that integrating green hydrogen into sustainable fuels, such as sustainable aviation fuel and renewable diesel, would result in at least a 70% reduction in CO2 emissions compared to conventional fuels.
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. It collects up to 10 kilotons of used edible oil per year from hotels, restaurants and the retail sector.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company will spend the money on a number of projects at its Petrobrazi Refinery, north of Bucharest, including the construction of a sustainable aviation fuels (SAF) and renewable diesel (HVO) plant and two plants for the production of green hydrogen. Starting in 2028, the company aims to supply around 250 kilotons per year of sustainable fuels. Petrobrazi is the first refinery in the country certified to produce SAF and HVO through the co-processing of biological raw materials.
"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," said Christina Verchere, chief executive of OMV Petrom. "In total, by 2030, we're committing 11 billion euro ($11.8 billion) to transform the company for a lower carbon future, both in Romania and the region."
It will spend an estimated 560 million euro (US$605 million) on the new SAF/HVO plant which will also make byproducts like bio-naphtha and bio-liquefied petroleum gas (LPG), which are used in the chemical industry. OMV said that in-built flexibility of the installation will allow for adjusting the product mix according to market demand and the available feedstock mix. The plant will have an annual consumption of about 11 kilotons of hydrogen, most of which will be provided by the two new green hydrogen production units.
Radu Căprău, OMV Petrom executive board member responsible for Refining and Marketing, added: "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. For our customers, this means product certainty and less carbon emissions. We want to continue to be our customers' first choice in the future by offering them the products they need..."
Investment in the two green hydrogen units is estimated at about 190 million euro (US$204 million), of which up to 50 million euro (US$54 million) has been provided by the European Union (EU) through the National Plan for Recovery and Resilience (NPRR). The two units will have a total capacity of 55 megawatts (MW), with a total annual production of green hydrogen estimated at around 8 kilotons. OMV estimated that integrating green hydrogen into sustainable fuels, such as sustainable aviation fuel and renewable diesel, would result in at least a 70% reduction in CO2 emissions compared to conventional fuels.
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. It collects up to 10 kilotons of used edible oil per year from hotels, restaurants and the retail sector.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
