Expur to Provide OMV Petrom with Raw Material for SAF Production

OMV Petrom concluded a contract with Expur 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 an additional two-year period, 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 750mn, depending on the ordered quantity. The price is based on a formula that is indexed to an international quotation.

“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,” Radu Caprau, member of the OMV Petrom Executive Board responsible for Refining and Marketing, said.

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.

“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,” Nikolay Belchev, CEO Expur S.A., added.

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 1bn for the decarbonization of transport in Romania, of which approximately EUR 750mn will be for the construction of a SAF/HVO facility and two green hydrogen facilities within the Petrobrazi refinery. The company aims to position Petrobrazi as the first major producer of sustainable aviation fuel and renewable diesel in South-East Europe by 2028.

The company announced the final investment decision for a 250 kiloton per-year capacity to produce sustainable aviation fuel and hydrotreated vegetable oil. The high flexibility of the installation will allow to adjust the product mix according to market demand and available feedstock.

OMV Petrom has already taken the first steps towards ensuring the necessary inputs and has secured 80 percent of the feedstock for the first 8 years. The company also took the final investment decision for two electrolysers totalling 55 MW capacity, ensuring around 70 percent of the necessary hydrogen input for the SAF/HVO unit. These projects will benefit from 50-million-euro EU non-reimbursable funds.

Last year, OMV Petrom acquired a 50% stake in ‘Respira 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.