OMV Petrom will build two green hydrogen production capacities at Petrobrazi
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OMV Petrom, the largest integrated energy producer in Southeast Europe, announces the signing of two PNRR financing contracts for the construction of two green hydrogen production capacities with a total capacity of 55 MW at the Petrobrazi refinery. The contracts were signed with the Ministry of Energy for a maximum financing value of 50 million euros; the value of the total investment is about 140 million euros.
The funding was obtained following the resumption in July 2023 of the competitive procedure for projects to support investments in green hydrogen, originally launched in 2022.
“Through the 2030 Strategy, we are committed to supporting the energy transition in Romania and the region, with investments of around 11 billion euros until the end of this decade, of which around 35% will support projects with low and zero carbon emissions. We have made important steps in renewables and electro-mobility projects, and with this project we are adding hydrogen to our portfolio of low-carbon projects”, says Christina Verchere, CEO of OMV Petrom.
The projects aim at the construction of two water electrolysis facilities, of 35 MW and 20 MW within the Petrobrazi refinery. The entire process will be powered by renewable energy, therefore without carbon emissions, allowing the hydrogen obtained to be classified as green hydrogen.
The annual amount of green hydrogen that will be produced within the two projects was estimated at around 8 kilotons.
“We are proud to be among the first producers of green hydrogen in Romania. Green hydrogen, produced from renewable energy sources, is a viable solution for a low-carbon future. By developing these projects at Petrobrazi, we are taking important steps towards a sustainable refining activity”, says Radu Căprău, member of the OMV Petrom Directorate, responsible for the Refining and Marketing activity.
Integrating green hydrogen into the process of obtaining green fuels, such as sustainable aviation fuel and biodiesel, will result in at least a 70% reduction in CO2 emissions compared to conventional fuels.
Currently, the projects are in the design phase, aiming for the final investment decision in 2024.
OMV Petrom is the largest integrated energy producer in Southeast Europe, with annual group crude oil and gas production of approximately 41 million boe in 2023. The group has a refining capacity of 4.5 million tonnes annually and operates an 860 MW high-efficiency natural gas-fired power plant. On the retail oil products distribution market, the Group is present in Romania and neighboring countries through approximately 780 gas stations, under two brands – OMV and Petrom.
OMV Petrom is a company in which, at the end of 2023, Romanian shareholders own over 43% of the shares (of which the Romanian state, through the Ministry of Energy, owns 20.7%, and 22.5% are owned by Romanian pension funds , to which are added almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of Austria’s largest listed industrial companies, owns 51.2% of OMV Petrom shares, with the remaining 5.6% owned by other foreign investors. Of the total shares of OMV Petrom, 28.1% are freely traded on the Bucharest Stock Exchange.
OMV Petrom is one of the largest contributors to the state budget, with around 42 billion euros representing fees, taxes and dividends paid between 2005 and 2023. In the same period, the company invested around 18 billion euros.
Since 2007, OMV Petrom has integrated the principles of corporate responsibility into its business strategy. Between 2007 and 2023, the company allocated around 160 million euros for the development of communities in Romania, focusing on environmental protection, education, health and local development.
On July 29, 2020, OMV Petrom announced its support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD), the Task Force for the publication of financial information related to climate change on the risks and opportunities associated with climate change. OMV Petrom reports annually on the progress made regarding the implementation of these recommendations.
