Yesterday, OMV Petrom announced that it signed financing through the National Recovery and Resilience Plan (NRRP) for two green hydrogen production projects at Petrobrazi refinery, worth EUR 50m. The total investment is estimated at app. EUR 140m.

OMV Petrom, one of the largest energy producers in the SEE region, as well as one of the largest members of Romania’s BET index, yesterday announced the signing of financing with the Romanian Ministry of Energy. This would refer to the signing of two financing contracts through the NRRP, for the construction of two production facilities for green hydrogen, with a total capacity of 55 MW at the Petrobrazi refinery. The contracts were signed for a maximum funding amount of EUR 50m, with the total investment set at app. EUR 140m.

OMV Petrom further notes that the funding was obtained following the reopening, in July 2023, of the competitive call for projects supporting investments in green hydrogen, initially launched in 2022. Furthermore, according to OMV Petrom’s CEO: “Through our Strategy 2030, we committed to support the energy transition in Romania and the region, with investments or around EUR 11 billion by the end of this decade, of which approximately 35% will support low- and zero-carbon projects. We have made great strides in photovoltaic and electro-mobility projects, and with this project we are adding hydrogen to our portfolio of low carbon projects.”

Also, according to OMV, the projects consist of building two water electrolysis plants of 35 MW and 20 MW at the Petrobrazi refinery. The entire production process will be powered by renewable energy and, therefore carbon-free, allowing the hydrogen obtained to be classified as green hydrogen. The annual amount of green hydrogen to be produced by the two projects has been estimated at app. 8 kilotons.

Integrating green hydrogen into the production process of green fuels, such as sustainable aviation fuel and biodiesel, will lead to a CO2 emission reduction of a minimum of 70% compared to conventional fuels. The projects are currently in the engineering phase aiming to reach a final investment decision in 2024.

OMV Petrom, BET index performance (2020 – 2024 YTD, %)

Source: Bloomberg, InterCapital Research