OMV Petrom starts construction of renewable diesel, SAF unit at Petrobrazi refinery in Romania

The Petrobrazi refinery in Romania. (Photo: OMV Petrom)

OMV Petrom, the largest integrated energy producer in Southeastern Europe, announced Feb. 19 the start of construction for a sustainable aviation fuel (SAF) and renewable diesel production unit at the Petrobrazi refinery in Romania.

OMV Petrom said this new facility will position it as the first major producer of sustainable fuels in Southeast Europe, with an annual capacity of 250,000 tons starting in 2028.

“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 OMV Petrom CEO Christina Verchere.

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

Radu Căprău, a member of the OMV Petrom executive board who is responsible for refining and marketing, added, “This investment strengthens the role of the Petrobrazi refinery in providing the necessary fuels for mobility—today and in the future. Building on a long tradition of operational excellence, the refinery is transforming to accommodate the production of sustainable fuels. With the commencement of this very complex project, employing new and innovative technologies, we are proud to lead the way with the first installation of its kind in our operating region. This achievement is made possible by our highly qualified colleagues, whose expertise and dedication are crucial to our success.”

The new unit will enable OMV Petrom to integrate the production of SAF and renewable diesel with the existing infrastructure for fuel production, storage and distribution, thus meeting the region’s sustainable-mobility needs.

The project involves a total investment of 750-million euros (USD$782 million), of which 560-million euros are allocated for the construction of the renewable diesel/SAF unit, and 190-million euros for two green-hydrogen production facilities.

In February 2024, OMV Petrom announced it had secured financing for the green-hydrogen units.

The final-investment decision to move forward with renewable diesel, SAF and green-hydrogen production was made in June.

Later that month, OMV Petrom said it had signed a six-year feedstock-supply contract with Expur set to begin in 2028 with the option to extend the agreement for two additional years.

In December, John Wood Group PLC announced that, following the successful delivery of the front-end engineering and design (FEED) for this project, it would also deliver engineering, procurement and construction management to install the new biobased hydrotreater unit and relevant storage facilities at the refinery.

The Petrobrazi refinery will utilize Ecofining™ process technology developed by Honeywell and the Italian oil company Eni.

OMV Petrom said the flexibility of the new facility allows for the adjustment of the type of raw materials used, whether used cooking oil or animal fats, and the mix of finished products—SAF and renewable diesel as well as bionaphtha and bio-LPG, depending on market requirements and the availability of feedstock.