OMV Petrom has commenced construction of a sustainable aviation fuel (SAF) and renewable diesel (HVO) production unit at its Petrobrazi refinery in Romania.

The €750m investment is set to deliver an annual capacity of 250,000 tonnes of sustainable fuels by 2028. This is expected to help in positioning the company as a major producer in Southeast Europe.

The facility will integrate with OMV Petrom’s existing refining and distribution network, supporting the company’s transition towards alternative fuels.

The project includes two green hydrogen production units, with €190m allocated for their development, while €560m is directed toward the SAF and HVO production unit.

SAF and HVO are derived from renewable feedstocks such as used vegetable oils and animal fats. These raw materials undergo processing with green hydrogen to produce fuels with characteristics comparable to conventional kerosene and diesel.

According to OMV Petrom, the shift to these fuels is expected to lower carbon dioxide emissions, with SAF and HVO projected to reduce emissions by at least 65% compared to fossil fuels.

The design of the new facility allows for adjustments in feedstock supply and product output based on market conditions.

OMV Petrom CEO Christina Verchere said: “Investing in sustainable fuel production is part of our Strategy 2030 and reflects OMV Petrom’s commitment to energy transition and reducing carbon emissions. Sustainable fuels are essential to decarbonise 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.”

In addition to SAF and HVO, the unit will produce bio-naphtha and bio-LPG. This operational flexibility is intended to support changing demand and supply chain constraints in the renewable fuels sector.

Petrobrazi refinery, with a crude oil refining capacity of 4.5 million tonnes per year, remains a key asset in OMV Petrom’s portfolio. The facility produces gasoline, diesel, liquefied petroleum gas (LPG), and aviation fuel.

It is equipped to process the company’s entire equity crude oil production and operates under established environmental and performance standards.

Established in 1934 as the Creditul Minier refinery, Petrobrazi initially had a refining capacity of 300,000 tonnes per year. The refinery sustained heavy damage during the Second World War and underwent significant reconstruction in the following decades.