OMV Petrom Secures €50 Million for Green Hydrogen Initiatives

OMV Petrom, the leading integrated energy producer in South-eastern Europe, has recently disclosed the signing of two financing agreements under the National Recovery and Resilience Plan (NRRP).

These agreements are aimed at facilitating the establishment of two green hydrogen production facilities with a combined capacity of 55 megawatts (MW) at the Petrobrazi refinery, reports chemanalyst.com website. The contracts, inked with the Romanian Ministry of Energy, secure a maximum funding of €50 million, supporting a total investment outlay of approximately €140 million. This funding was secured after the reopening of the competitive call for projects promoting investments in green hydrogen in July 2023, initially launched in 2022.

Christina Verchere, CEO of OMV Petrom, emphasized the company's commitment to driving the energy transition in Romania and the broader region through its Strategy 2030. This strategy entails investments totaling around €11 billion by the decade's end, with approximately 35% earmarked for low- and zero-carbon initiatives. Verchere highlighted OMV Petrom's significant strides in renewable energy and electro-mobility projects, underscoring the addition of hydrogen projects to their portfolio of low-carbon endeavors.

The projects entail the construction of two water electrolysis plants, one with a capacity of 35 MW and the other 20 MW, at the Petrobrazi refinery. Notably, the entire production process will be powered by renewable energy sources, rendering it carbon-free and enabling the classification of the resultant hydrogen as green hydrogen.

Projections estimate an annual production capacity of approximately 8 kilotons of green hydrogen from these projects. The integration of green hydrogen into the production process of green fuels, such as sustainable aviation fuel and biodiesel, is expected to yield a substantial reduction in CO2 emissions, with a minimum decrease of 70% compared to conventional fuels.

At present, the projects are in the engineering phase, to reach a final investment decision in 2024. The National Recovery and Resilience Plan (NRRP), backed by the European Commission, serves as a pivotal funding mechanism supporting initiatives aimed at promoting economic recovery and resilience in the aftermath of the COVID-19 pandemic.

OMV Petrom stands as the preeminent integrated energy producer in Southeastern Europe, boasting a robust annual Group hydrocarbon production of approximately 41 million barrels of oil equivalent (boe) in 2023. The Group also commands a formidable refining capacity of 4.5 million tons per annum and oversees the operations of an 860 MW high-efficiency gas-fired power plant. Moreover, OMV Petrom maintains a prominent presence in the oil products retail market within Romania and neighboring countries, boasting a network of approximately 780 filling stations operating under two distinguished brands – OMV and Petrom.