OMV Petrom S A : secures its raw material for the production of sustainable fuels

OMV Petrom secures its raw material for the production of sustainable fuels

• OMV Petrom and Expur (Expur S.A.) concluded a contract for the purchase of fully refined vegetable oil to produce diesel from renewable sources
• At least 50% of the amount of refined vegetable oil supplied by Expur will be produced in Romania

OMV Petrom, the largest integrated energy producer in Southeastern Europe, 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 (HVO) production facility, for which the company recently made 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 EUR 750 mn, depending on the ordered quantity. The price is based on a formula that is indexed to an international quotation.

Radu Căprău, member of the OMV Petrom Executive Board responsible for Refining and Marketing: "We are always looking for solutions for low-carbon emissions transportation, so as to remain our customers' preferred choice in the future. 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."

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.

Nikolay Belchev, CEO Expur S.A.: "In Expur, we frame our projects and investments on providing people with healthier food, protecting nature and supporting the circular economy. Last year we started up the engines of a cogeneration plant, a EUR 15.5 million 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% 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 EUR 1 bn for the decarbonization of transport in Romania, of which approximately EUR 750 mn will be for the construction of a SAF/HVO facility and two green hydrogen facilities within the Petrobrazi refinery.

Last year, OMV Petrom acquired a 50% 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 kt of used edible oil per year from economic agents in fields such as the hospitality industry (hotels, restaurants) and retail.

About OMV Petrom  

OMV Petrom is the largest integrated energy producer in Southeastern Europe, with an annual Group hydrocarbon production of approximately 41 million boe in 2023. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency gas-fired power plant. The Group is present on the oil products retail market in Romania and neighbouring countries through approximately 780 filling stations under two brands - OMV and Petrom.

OMV Petrom is a company in which, as of end-2023, Romanian shareholders hold over 43% of the shares (of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 22.5% are owned by pension funds in Romania, to which are added almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.2% stake in OMV Petrom, and the remaining 5.6% are held by other foreign investors. Of the total shares of OMV Petrom, 28.1% represents the free float on the Bucharest Stock Exchange.

OMV Petrom is one of the largest contributors to the state budget, with approximately 42 billion euro in taxes and dividends paid between 2005 and 2023. During the same period, the company invested approximately 18 billion euro.

Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007 and 2023, the company has allocated around 160 million euro to develop communities in Romania, focusing on environmental protection, education, health, and local development.

On July 29th, 2020, OMV Petrom announced its support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD) regarding risks and opportunities on climate change. OMV Petrom annually reports on the progress made in implementing these recommendations.

About Expur

Expur is one of the largest oilseed processing companies in Romania. With more than 25 years of experience in the market, Expur's activity has been focused on the sustainable creation of value in the field of oils and proteins, contributing to the quality of human and animal nutrition and to the preservation of the planet.

Responsible sourcing is one of Expur's objectives, with more than 90% of the seeds processed being of Romanian origin.

About Avril

5th largest agri-food group in France, Avril is the industrial and financial leader in the French vegetable oil and protein sector. Created by the agricultural world, the Group develops innovative, healthy and sustainable solutions to feed people and animals, and accelerate the decarbonization of the planet. Its purpose, Serving the Earth, guides its actions, in line with its ambition to become by 2030 the leader in plant transformation, serving the agricultural, food and environmental transitions.

In addition to its historic role as an investor, the Group is now a manufacturer firmly rooted in plant processing, from seed to processed product. Active in human food, animal nutrition and expertise, renewable energies and green chemistry, it deploys a portfolio of activities that are all leaders in their markets.

Strengthened by this link with the French farm, Avril has based its growth over the past 40 years on a unique value-creation model: it reinvests all its profits in the dynamics of the industry and its development in France and abroad.

Present in 19 countries with nearly 7,500 employees at 69 industrial sites and sales offices, Avril achieved sales of 8 billion euros in 2023.

For further information: avril.com | X @Avril_Eng | Linkedin Avril