OMV Petrom secures vegetable oil for green diesel

OMV Petrom will start receiving the vegetable oil deliveries in 2028, it said in a press release on Thursday. The contract was signed for a period of six years, with the possibility of a two-year extension.

"According to the contract, Expur will supply a maximum total quantity of 0.7 million tons, with an estimated value of over 750 million euro ($802.4 million), depending on the ordered quantity. The price is based on a formula that is indexed to an international quotation," OMV Petrom explained.

The vegetable oil will be used as feedstock in the sustainable aviation fuel (SAF) and renewable diesel (HVO) production facility that the company plans to build at its Petrobrazi refinery, near the southern city of Ploiesti. Earlier this month, OMV Petrom said it will invest around 750 million euro to build a plant for the production of SAF and HVO, along with two plants for the production of green hydrogen. This project is part of the company's broader objective of investing 1 billion euro for the decarbonization of transport in Romania, as per the current statement.

"Through the contract with Expur, we are securing part of the raw material to produce diesel from renewable sources, thus progressing towards our ambition to become the first major producer of renewable fuels in the region," Radu Caprau, OMV Petrom board member responsible for refining and marketing, said.

In April, OMV Petrom said it will test an innovative carbon capture and utilisation installation at its Petrobrazi refinery over a period of four months, starting this month. The company approved an all-time high investment budget of 8 billion lei ($1.72 billion/1.61 billion euro) for 2024.

OMV Petrom reported a 1.399 billion lei net profit for the first quarter of 2024, down 6% compared to the same period of last year.

Shares in OMV Petrom traded 0.13% higher at 0.755 lei as at 0925 CET on June 28 on the Bucharest Stock Exchange.

(1 euro = 4.9768 lei)