OMV Petrom to spend EUR 750m on major biofuel plan in Romania

Romanian oil company OMV Petrom (BSE:SNP) has decided to invest some EUR 750 million (USD 805m) in a number of projects to produce sustainable aviation fuels (SAF), renewable diesel (HVO), and green hydrogen at its existing Petrobrazi refinery.

The company said today it has made the final investment decision to build a EUR-560-million plant with the capacity to produce 250 kt/year of SAF and HVO along with by-products such as bio-naphtha and bio-LPG for the chemical industry.

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In addition, OMV Petrom will construct two green hydrogen production facilities with a combined capacity of 55 MW at a total cost of around EUR 190 million, of which EUR 50 million will be covered by European funds. Those two units are expected to produce about 8 kt of green hydrogen per year and meet most of the hydrogen needs of the new SAF/HVO plant.

"We are moving forward with our transformation, in addition to our new renewable power projects, today we have taken a decisive step towards decarbonising transport in Romania. 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.

The company noted it has bought a 50% stake in used cooking oil collection business Respira Verde to ensure access to a safe source of raw materials to produce biofuels.

(EUR 1.0 = USD 1.073)