OMV Petrom, the largest integrated energy company in Southeast Europe, has signed a financing contract with the Ministry of Energy for the construction of a hydrogen production capacity at the Petrobrazi refinery in Romania. The project, which is estimated to cost around EUR 74 million, will involve the operation of a 20 MW capacity for hydrogen production by water electrolysis, powered by renewable energy. The production of green hydrogen is expected to reduce CO2 emissions by at least 70% compared to conventional fuels. The company plans to become the main integrated player in Romania's hydrogen market.
OMV Petrom, the largest integrated energy company in Southeast Europe, announces the signing of a financing contract through the National Plan for Recovery and Resilience for the construction of a hydrogen production capacity by water electrolysis at the Petrobrazi refinery. The contract was signed with the Ministry of Energy, for a maximum value of about EUR 39 million, the total investment being estimated at about EUR 74 million.
Christina Verchere, CEO of OMV Petrom: "We believe that Romania has significant potential for the development of green energy projects, and the funds available to finance these projects open opportunities for the economic growth of the country. By the 2030 Strategy, we are committed to support the energy transition in Romania and in the region, with investments of around EUR 11 billion until the end of this decade, out of which approximately 35% will support low and zero carbon projects."
Radu Căprău, member of the OMV Petrom Executive Board, responsible for Refining and Marketing: “Green hydrogen opens new opportunities for a low carbon emissions economy. It will play an important role in decarbonizing refineries and in the sustainable transportation, whether we speak about road, railway, or air transport, being one of the solutions for the mobility of the future. We estimate that the hydrogen demand will increase significantly in Romania, especially in the next decade. We believe OMV Petrom has the opportunity to become the main integrated player on Romania’s hydrogen market.”
The project involves putting into operation, within the Petrobrazi refinery, a capacity of 20 MW for hydrogen production by water electrolysis. The entire process will be powered by renewable energy. This means that no CO2 emissions will be generated from the use of energy during water electrolysis, when the separation of oxygen and hydrogen molecules happens.
The volume of green hydrogen to be produced has been estimated at over 2,600 tons per year. The integration of the obtained green hydrogen will lead to a reduction of at least 70% of the CO2 emissions along the entire production value chain of sustainable fuels compared to conventional fuels.
In the next period, the company will start the public tender for the purchase of the electrolyzer, with the final investment decision to be made in 2024. Completion of the works is estimated for 2025.