OMV begins work on Petrobrazi SAF site

European energy major OMV said it has begun construction on its sustainable aviation fuel (SAF) and renewable diesel production (HVO) site in Romania.

The site will have the capacity to produce 250,000 tons of renewable fuels per annum.

“Investing in sustainable fuel production is part of our Strategy 2030 and reflects OMV Petrom’s commitment to energy transition and reducing carbon emissions,” said Christina Verchere, chief executive officer at OMV Petrom.

“Sustainable fuels are essential to decarbonize transportation, especially in sectors where electrification is difficult to implement, such as aviation. Between 2022 and 2030, we are allocating 35% of our investment budget towards projects that support the energy transition, in Romania and the region.”

The company said the decision to expand and install renewable fuel production at the existing Petrobrazi refinery will enable it to integrate the production of SAF and HVO with the existing infrastructure for fuel production, storage, and distribution, thus meeting the region’s sustainable mobility needs.

The investment earmarked for the project is around €750m ($785m). Of this nearly $586.2m will be used for the construction of the SAF/HVO with remainder of €198.9m for two green hydrogen production facilities.

Earlier in January, OMV and European aerospace manufacturer Airbus announced a partnership to decarbonise aviation through SAF.

Under the agreement, the two companies will explore joint solutions to broaden the voluntary access to SAF for various customer groups, aimed at stimulating new demand and thereby supporting large-scale investments in new SAF production facilities.

The two companies will also review opportunities to accelerate the testing, evaluation, and approval of new feedstocks, as well as new production pathways to make SAF available more quickly.