Romania's OMV Petrom invests 21 mln euro to raise bio-blending capacity at Petrobrazi refinery

Romania's top oil and gas group OMV Petrom [BSE:SNP] said on Wednesday that it has invested 21 million euro ($25 million) since 2018 to increase the bio-blending capacity and improve infrastructure for transport, unloading and storage of bio-components within Petrobrazi refinery.

Following the investments, Petrobrazi has increased the blending capacity of bio-content in fuels from 200 kilotonnes to around 350 kilotonnes of bio-fuels per year, OMV Petrom said in a statement filled with the Bucharest Stock Exchange, BVB.

OMV Petrom supplies fuels with a volumetric bio-content of 6.5% in diesel and 8% in gasoline.

As per European regulations, the renewable energy content in transportation fuels must increase from 10% in 2020 to 14% in 2030, in order to support the reduction targets of greenhouse gas emissions arising from transportation.

"We are an energy company and we want to be part of the solution for a cleaner energy. We are investing in obtaining fuels with a high level of biofuel content, as well as in alternative solutions for mobility and in various others sustainable projects. It is a combined effort at all levels across our company, as we aim to reduce our carbon emissions by 27% by 2025 versus 2010," OMV Petrom executive board member Radu Caprau said.

Petrobrazi has a total crude oil processing capacity of 4.5 million tonnes per year and, starting 2005, OMV Petrom has invested approximately 1.8 billion euro in the refinery.

One third of this investment contributed to the reduction of the environmental impact. Thus, the carbon emissions of OMV Petrom's operations in 2019 were 22% lower than in 2010.

OMV Petrom is the largest integrated energy company in Southeast Europe, with an annual group hydrocarbon production of 55.4 million boe in 2019. The group has a refining capacity of 4.5 million tons annually and operates an 860 MW high efficiency power plant. The group is present on the oil products retail market in Romania and neighboring countries through 798 filling stations, at the end of September 2020, under two brands – OMV and Petrom.

Austria's OMV Aktiengesellschaft holds a 51.011% stake in OMV Petrom. The Romanian economy ministry owns 20.639%, Fondul Proprietatea holds 6.997%, and 21.353% is the free float on the Bucharest Stock Exchange and the London Stock Exchange.

OMV Petrom's shares were trading 1.40% lower to 0.3250 lei ($0.08/ 0.07 euro) on the Bucharest Stock Exchange at 0939 CET on Wednesday.

($=0.8422 euro)

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