Integrated energy producer OMV Petrom has begun construction of a sustainable aviation fuel (SAF) and renewable diesel (HVO) production unit at its Petrobrazi refinery in Romania. Following a total investment of EUR 750 million, the facility will have an annual production capacity of 250,000 tons and will make the company the first major producer of sustainable fuels in Southeast Europe.

The total investment includes EUR 560 million for the SAF/HVO unit and EUR 190 million for two green hydrogen production facilities. 

OMV Petrom CEO Christina Verchere emphasized that investing in sustainable fuel production aligns with OMV Petrom's Strategy 2030, which allocates 35% of the company's investment budget to energy transition projects. She highlighted the major role of SAF and HVO in decarbonizing transport, particularly in sectors where electrification remains challenging, such as aviation.

The new unit will enable OMV Petrom to integrate the production of SAF and HVO with the existing infrastructure for fuel production, storage, and distribution, thus meeting the region's sustainable mobility needs.

SAF (Sustainable Aviation Fuel) and HVO (Hydrotreated Vegetable Oil also known as renewable diesel) are sustainable fuels manufactured by processing renewable raw materials, such as used vegetable oils and animal fats. Through advanced refining processes using green hydrogen, these materials are transformed to have characteristics similar to those of conventional kerosene and diesel. 

Using these fuels allows for a significant reduction in CO2 emissions compared to traditional fossil fuels (for example, by at least 65% in the case of SAF and HVO), OMV Petrom said.

In addition to the development of sustainable fuel production, OMV Petrom is expanding its network of charging points for electric vehicles, aiming for over 5,000 units by 2030 in Romania, compared to approximately 900 currently.

OMV Petrom is the largest integrated energy producer in Southeastern Europe, with an annual group hydrocarbon production of approximately 40 million boe in 2024. The group has a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency gas-fired power plant.

The group is present in the oil products retail market in Romania and neighboring countries through approximately 780 filling stations under two brands – OMV and Petrom.

As of the end-2024, Romanian shareholders hold over 43% of the OMV Petrom shares, of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 22.5% are owned by pension funds in Romania. They are joined by almost 500,000 individual investors and other Romanian entities.  

OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.2% stake in OMV Petrom, and the remaining 5.6% is held by other foreign investors. 

Of the total shares of OMV Petrom, 28.1% represents the free float on the Bucharest Stock Exchange.

irina.marica@romania-insider.com

(Photo source: OMV Petrom)