OMV Petrom to acquire 50% stake in leading Romanian UCO-collection company

OMV Petrom, the largest integrated energy company in Southeastern Europe, has signed an agreement to purchase 50 percent of the shares of the Romanian company Respiră Verde, a local leader in the collection of used cooking oil (UCO).

The closing of the transaction is expected to take place in the first quarter of 2024, after fulfillment of certain conditions, including the clearance of the Competition Council and of the Commission for Screening of Foreign Direct Investments.

UCO is one of the main renewable feedstocks to produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO), also known as renewable diesel, therefore leading to reduced carbon emissions within the transportation sector.

By using SAF, CO2 emissions from commercial flights are approximately 80 percent lower than conventional fuel.

“We are looking for the best solutions to reduce emissions, and biofuels offer an opportunity to decarbonize transportation,” said Radu Caprau, a member of OMV Petrom’s executive board who is responsible for refining and marketing. “One of the targets of our 2030 strategy is for biofuels to account for more than 15 percent of total fuel production. Through this transaction, we take a first step towards ensuring our access to the raw material necessary to produce biofuels and open up the prospect of integrating the circular economy into our core activities.”

Founded 12 years ago, Respiră Verde collects up to 10,000 tons of UCO per year from companies active in sectors such as hospitality (hotels, restaurants) and retail.

The company has its own transport fleet, and it operates two main warehouses in Bihor and Ialomița, Romania.

It aims to expand its activity in other European markets in the near future.

“Through this transaction, we join OMV Petrom in its efforts to reduce emissions and produce sustainable fuels,” said Ionut Popsea, co-founder of Respiră Verde. “We share the same goals regarding the used cooking oil market, and we believe that together we will increase the collection rate in Romania and the region.”

OMV Petrom noted that it has taken important steps to increase the share of biofuels.

In 2022, Petrobrazi became the first refinery in the country certified by the International Sustainability and Carbon Certification System capable of producing SAF and HVO by coprocessing biological feedstocks.

OMV Petrom is considering expanding its production capacity to produce sustainable fuels from a wide range of residual feedstocks, such as UCO.