OMV Petrom secures raw material for renewable diesel, SAF production at Petrobrazi refinery in Romania

OMV Petrom's Petrobrazi refinery in Romania. (Photo: OMV Petrom)

OMV Petrom, the largest integrated energy producer in Southeastern Europe, announced June 27 that it has concluded a contract with Expur S.A. 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 production facility, for which the company recently made a final-investment decision. 

The contract covers a period of six years, with the possibility of extension for an 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 (USD$807 million), 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, a member of the OMV Petrom executive board responsible for refining and marketing. “Alongside electromobility, 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.”

Expur S.A. is a Romanian company, part of the Avril Group, one of the largest producers of vegetable oil and diesel from renewable sources in Europe. 

“In Expur, we frame our projects and investments on providing people with healthier food, protecting nature and supporting the circular economy,” said Expur CEO Nikolay Belchev. “Last year we started up the engines of a cogeneration plant, a 15.5-million-euro (USD$16.7-million) investment where we use the husks from sunflower-seed 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 percent 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 (USD$1.08 billion) for the decarbonization of transport in Romania, of which approximately 750 million euros (USD$806.6 million) will be for the construction of a renewable diesel/SAF facility and two green hydrogen facilities within the Petrobrazi refinery. 

Last year, OMV Petrom acquired a 50 percent stake in Respiră Verde, a leader in the collection of used cooking oil in Romania to ensure a source of raw materials to produce biofuels.

Respiră Verde collects up to 10,000 tons of used edible oil per year from economic agents in fields such as the hospitality industry (hotels, restaurants) and retail.