What Is OMV Group Doing for Sustainability? Key Initiatives and Impact Explained

OMV’s Bold Bet on a Sustainable Future: A Deep Dive into their €11 Billion+ Transition

OMV Group, the international integrated energy and chemicals company, is undergoing a dramatic transformation, pivoting from a traditional oil and gas giant to a champion of circularity and sustainable energy. With a stated ambition to achieve net-zero emissions by 2050 and a concrete plan to slash oil and gas production by 20% by 2030, OMV is putting its money where its mouth is. This isn’t just greenwashing; it’s a fundamental shift in strategy fueled by substantial investments, strategic partnerships, and a commitment to emerging technologies. In 2023, OMV has already demonstrated its commitment by achieving a significant milestone, establishing a production capacity of 195.9 kt of sustainable (including recycled and biobased) polyolefins and other chemicals, showcasing their early progress towards sustainable solutions.

This blog post delves into OMV’s sustainability initiatives, exploring the key investments, partnerships, technological advancements, and future outlook that define their ambitious journey towards a cleaner, more sustainable future. The transition also showcases OMV’s goal to allocate 40% of its annual Group investments to sustainable projects by 2025.

OMV’s Investment in a Greener Tomorrow

OMV is making significant financial commitments to achieve its sustainability goals. OMV Petrom is investing heavily in renewable energy projects, Neptun Deep development, and electro-mobility expansion, allocating a substantial RON 7.2 billion (approximately $1.55 billion USD based on the average 2024 exchange rate) in 2024 alone. Furthermore, OMV Petrom initiated a €750 million project at its Petrobrazi refinery dedicated to sustainable fuels in 2025. This includes €560 million for a Sustainable Aviation Fuel (SAF)/Hydrotreated Vegetable Oil (HVO) unit and €190 million for a green hydrogen facility, signaling a major push into advanced biofuels and hydrogen production. Adding to its green hydrogen portfolio, OMV is planning to build Austria’s largest electrolysis plant for green hydrogen production. Moreover, OMV Petrom plans to invest roughly 8 billion lei ($1.74 billion USD) per year for three years (2024-2026) on Neptun Deep offshore gas, renewables, and Black Sea gas. Overall, OMV Petrom is investing €11 billion in diverse energy projects utilizing both natural and renewable resources. Reinforcing its commitment to circularity, OMV secured €81.6 million in EU funding for its industrial ReOil plant for chemical recycling of plastics, scheduled for 2025.

Table: OMV Investments in Sustainability

Strategic Partnerships for a Circular Future

OMV understands that collaboration is key to accelerating the energy transition. This is evident in their diverse partnerships, which span green hydrogen development, sustainable butadiene production, plastic recycling technology, and more. OMV partnered with Masdar, the UAE’s clean energy leader, to advance green hydrogen and eSAF development in 2025. This partnership underscores OMV’s commitment to exploring innovative technologies for decarbonizing the transportation sector. Furthermore, OMV partnered with Statkraft for a five-year power purchase agreement (PPA) to source renewable energy in Germany in 2025. This agreement secures a long-term supply of clean electricity for OMV’s operations. In 2023, OMV partnered with Synthos signed an MoU for long-term cooperation on sustainable butadiene until 2030, initially using palm fatty acid distillate (PFAD) and used cooking oil (UCO). This collaboration highlights OMV’s dedication to using sustainable feedstocks in its chemical production processes. OMV partnered with Wood for innovative plastic recycling technology, indicating its ambition to develop advanced recycling solutions. OMV and Interzero constructed Europe’s largest plastic waste sorting facility for chemical recycling. OMV partnered with Aspen Technology to accelerate progress towards net-zero targets. OMV collaborated with Tenaris at the OMV Group Supplier Sustainability & Innovation Day to enhance sustainability in the supply chain.

Table: OMV Partnerships for Sustainability

Industry Adoption: Circular Solutions Take Center Stage

OMV’s approach to sustainability extends across a broad spectrum of applications, signifying a comprehensive strategy. The company is investing in sustainable polyolefins and chemicals, renewable fuels, and advanced recycling technologies. The production capacity of 195.9 kt of sustainable polyolefins and chemicals in 2023 shows OMV is ready to deliver sustainable materials to manufacturers and customers. This diversification is essential for wider adoption, as it provides solutions for various sectors, from packaging to transportation. The diverse range of applications signals a move beyond niche markets and suggests growing demand for sustainable alternatives across various industries.

Geography: A European Focus with Global Reach

OMV’s sustainability initiatives are primarily focused in Europe, particularly Austria and Romania, but partnerships indicate global reach. The construction of Europe’s largest plastic waste sorting facility in collaboration with Interzero and the planned construction of Austria’s largest electrolysis plant highlight OMV’s commitment to building a circular economy within Europe. OMV Petrom’s projects in Romania are another indication of this regional approach. However, the partnership with Masdar in the UAE demonstrates a vision that extends beyond Europe, tapping into international expertise and resources for green hydrogen development. This geographic diversification is crucial for de-risking investments and gaining access to new markets.

Tech Maturity: From Pilot Projects to Commercial Scale

OMV’s sustainability efforts span various stages of technological maturity. The ReOil® technology, which chemically recycles plastic waste, represents a key innovation that is progressing toward commercialization with EU funding secured for a large-scale plant. The construction of SAF/HVO unit at the Petrobrazi refinery, along with the green hydrogen facility, demonstrates OMV’s commitment to deploying commercially viable technologies for renewable fuel production. The emergence of Bornewables™ through Borealis shows OMV is providing a range of circular product solutions. While some initiatives like green hydrogen production are still in the demonstration and scaling phase, others are already contributing to OMV’s sustainable product portfolio.

The Road Ahead: A Greener OMV by 2030 and Beyond

OMV’s partnerships, investments, and product launches signal a clear commitment to a sustainable future. By 2030, OMV aims to reduce Scope 1 and 2 emissions by 30% and Scope 3 emissions by 20%. OMV’s target of reaching a production capacity of 1.5 million tons per year of renewable fuels and chemical feedstock by 2030. The company is positioning itself to capitalize on the growing demand for sustainable materials and renewable energy. As OMV continues to invest in innovative technologies and strategic partnerships, it is well-positioned to lead the transition towards a circular, low-carbon economy. Keeping an eye on their progress towards net-zero emissions by 2050 will be crucial in assessing the long-term impact of their efforts.

Frequently Asked Questions

What is OMV’s primary sustainability goal?
OMV aims to achieve net-zero emissions by 2050 and reduce oil and gas production by 20% by 2030.

How much is OMV investing in sustainable projects?
OMV Petrom is investing €11 billion in diverse energy projects utilizing both natural and renewable resources and OMV plans to allocate 40% of its annual Group investments to sustainable projects by 2025.

What are some of OMV’s key sustainability projects?
Key projects include the Petrobrazi refinery sustainable fuels project (SAF/HVO and green hydrogen), the ReOil industrial plant for chemical recycling of plastics, renewable energy projects in Romania, and Austria’s largest electrolysis plant for green hydrogen production.

Who are some of OMV’s key partners in its sustainability efforts?
OMV is partnering with Masdar (green hydrogen and eSAF), Statkraft (renewable energy), Synthos (sustainable butadiene), Wood (plastic recycling technology), Interzero (plastic waste sorting), Aspen Technology (net-zero acceleration), and Tenaris (supply chain sustainability).

What is OMV’s target for renewable fuels and chemical feedstock production by 2030?
OMV aims to reach a production capacity of 1.5 million tons per year of renewable fuels and chemical feedstock by 2030.