Oil refinery to produce 55MW of green hydrogen for sustainable aviation fuel after €50m grant from EU funds

Romanian oil company OMV Petrom is set to establish one of the initial green hydrogen production facilities in Romania with a 55MW capacity at its Petrobrazi refinery, located 60km north of Bucharest. This initiative, aimed at producing sustainable aviation fuel (SAF), has secured €50m ($54.3m) from the country's EU-backed post-Covid recovery fund. The funding will be utilized for the installation of two electrolysers, with capacities of 35MW and 20MW, at the Petrobrazi plant. The generated renewable hydrogen will be employed in the synthesis of bio-based SAF and biodiesel.

The requirement for hydrogen arises during the production of SAF, emphasizing the necessity for the hydrogen to be green to ensure the authenticity of the resulting aviation fuel's sustainability. OMV Petrom asserts that the entire production process at Petrobrazi will be powered by renewable energy, rendering it carbon-free and enabling the classification of the obtained hydrogen as green hydrogen. However, the company does not provide specific details regarding the source of the clean electricity.

The incorporation of green hydrogen into the production of sustainable fuels, including SAF and biodiesel, is expected to result in a minimum 70% reduction in CO2 emissions compared to conventional fuels, according to OMV Petrom. The projects are presently in the engineering phase, with the final investment decision anticipated in 2024. OMV Petrom, majority-owned by Austria's OMV, estimates the total investment cost for the project at €140m. The €50m grant is part of the Romanian government's €28.5bn National Recovery and Resilience Plan, funded by the EU's €750bn NextGenerationEU Fund, comprising a combination of grants and loans.

Radu Căprău, a member of OMV Petrom's executive board, expressed pride in being among the pioneering green hydrogen producers in Romania. He highlighted the significance of green hydrogen from renewable sources as a viable solution for a low-carbon future. OMV Petrom's CEO, Christina Verchere, emphasized the company's commitment to supporting the energy transition in Romania and the region through their Strategy 2030, with significant investments in low- and zero-carbon projects, including renewables, electro-mobility, and now hydrogen.