Monday, July 15, 2024
HomeTransportOMV Petrom secures fully refined vegetable oil to produce sustainable fuels

OMV Petrom secures fully refined vegetable oil to produce sustainable fuels

OMV Petrom, the largest integrated energy producer in Southeastern Europe, concluded a contract with Expur, one of the largest oilseed processing companies in Romania, for the supply of fully refined vegetable oil. It will be used as feedstock in the Petrobrazi refinery’s sustainable aviation fuel (SAF) and renewable diesel (HVO) production facility, for which the company recently made a final investment decision.

The contract was concluded for a period of six years, with the possibility of extension for additional two years, with deliveries to begin in 2028.

According to the contract, Expur will supply a maximum total quantity of 0.7 million tons, with an estimated value of over 750 million euros, depending on the ordered quantity. The price is based on a formula that is indexed to an international quotation.

“We are always looking for solutions for low-carbon emissions transportation, so as to remain our customers’ preferred choice in the future,” said Radu Căprău, member of the OMV Petrom Executive Board responsible for Refining and Marketing. “Alongside electro-mobility, biofuels are our answer to this challenge. 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.”

“In Expur, we frame our projects and investments on providing people with healthier food, protecting nature and supporting the circular economy,” pointed out Nikolay Belchev, CEO of Expur. “Last year we started up the engines of a cogeneration plant, a 15.5 million euros investment where we use the husks from sunflower seeds hulls to generate the electricity and steam needed to run our Slobozia factory. We are the largest employer in Slobozia and we continue to develop strategic partnerships such as the one with OMV Petrom to support our long-term vision of becoming a leader in providing people with healthy food and renewable energy through excellence and innovation for a clean future.”

At least 50 per cent of the contracted amount of fully refined vegetable oil under this partnership comes from Romania, thus ensuring a sustainable flow along the entire supply chain, from production to placing the product on the local market.

OMV Petrom plans to invest around 1 billion euros for the decarbonisation of transport in Romania, of which approximately 750 million euros will be for the construction of a SAF/HVO facility and two green hydrogen facilities within the Petrobrazi refinery.

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