Romania’s leading oil and gas company, OMV Petrom, announced on Wednesday that it has started building a €560 million ($585.9 million) sustainable fuels plant at its Petrobrazi refinery, located near Ploiesti in the south of Romania.
The new facility will produce sustainable aviation fuels (SAF) and renewable diesel (HVO) with a combined annual capacity of 250,000 tonnes, set to begin operations in 2028, according to OMV Petrom’s press release.
“Investing in sustainable fuel production is a key part of our Strategy 2030, reflecting OMV Petrom’s commitment to the energy transition and reducing carbon emissions. Sustainable fuels are critical for decarbonizing transportation, particularly in sectors like aviation where electrification is challenging. From 2022 to 2030, we are dedicating 35% of our investment budget to projects that support the energy transition, both in Romania and the broader region,” said OMV Petrom CEO Christina Verchere.
Radu Caprau, an OMV Petrom board member responsible for refining and marketing, added, “With the launch of this complex project, incorporating new and innovative technologies, we are proud to lead the way in our region with the first facility of its kind.”
This plant is part of a broader €750 million initiative, which also includes €190 million for the development of two green hydrogen production plants. The project was first announced in June of last year.
In November, OMV Petrom confirmed it had signed an agreement to supply SAF to Romania’s state-owned carrier, Tarom, beginning January 1, 2025. This is in line with the EU’s RefuelEU regulation, which mandates that at least 2% of airport fuel must be SAF by 2025.
For 2024, OMV Petrom reported a net profit of 4.19 billion lei ($880.8 million/841.9 million euros), marking a 4% increase compared to the previous year.
As of 0932 CET on Wednesday, OMV Petrom’s shares were trading 0.98% higher at 0.77 lei on the Bucharest Stock Exchange.
