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Romania's OMV Petrom to start production of aviation fuel

Romania's OMV Petrom to start production of aviation fuel Petrobrazi refinery Source: OMV Petrom

BUCHAREST (Romania), June 23 (SeeNews) - Romania's top oil and gas group OMV Petrom [BSE:SNP] said on Thursday it will produce sustainable aviation fuel (SAF) at the Petrobrazi refinery by co-processing locally produced rapeseed oil.

The first test run volumes are planned in July, OMV Petrom said in a press release.

This test run was based on a successfully completed first rapeseed oil co-processing pilot at the Petrobrazi refinery, performed in July 2020.

"The production of SAF is part of our strategic objectives and we believe that it will become the main alternative for achieving the climate objectives of the aviation industry. Our goal is that, in 2030, to have an annual combined production of SAF and HVO (hydrotreated vegetable oil) of about 450 thousand tons," OMV Petrom member of the executive board responsible for refining and marketing Radu Caprau said.

The SAF volumes produced at the Petrobrazi refinery for commercial flights will help reduce the CO2 emissions by about 70% compared to the conventional fuel.

The company aims to increase the production capacities in the future in order to produce advanced sustainable fuels based on various waste feedstocks like used cooking oil.

In order to meet the Green Deal climate goals, the European Commission's current plan includes the use of at least 63% SAF out of the aviation fuel demand by 2050 for EU air transport, so sustainable fuels will play a major role in decarbonising this sector, OMV Petrom noted.

Romania is one of the largest producers of rapeseed in the European Union, ranking 4th in 2021, the company also said. According to the National Institute of Statistics, most of the production is exported as raw material (seeds), only a part of the quantities obtained being recovered internally.

OMV Petrom is the largest integrated energy company in Southeast Europe, with an annual group hydrocarbon production of approximately 47 million boe in 2021. The group has a refining capacity of 4.5 million tonnes annually and operates an 860 MW high-efficiency power plant. OMV Petrom is present on the oil products retail market in Romania and neighbouring countries through more than 780 filling stations, 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% and 28.35% is free float on the Bucharest bourse and the London Stock Exchange.

Shares in blue-chip OMV Petrom traded 0.73% lower at 0.4745 lei ($0.11/0.10 euro) by 1116 CET on the BVB on Thursday.

(1 euro=4.9469 lei)

OMV Petrom SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies