In the face of many uncertainties, our 2030 Strategy demonstrates that we know this to be true: we will grow our business, provide more energy with less emissions, assist our customers in decarbonizing, and make our employees proud to be a part of this journey. Transitioning to a low-carbon business means finding new and sustainable ways to meet the growing energy needs of society. We will continue to invest in order to meet the decarbonization targets.
Climate Change and Energy Transition
We recognize climate change as one of the most important global challenges. The goals set forth by the Paris Climate Change Agreement call for our full and continuous commitment to climate change mitigation and responsible resource management. Our 2030 ambition is to lead the energy transition in South-East Europe, capitalizing on emerging markets opportunities. The company aims to achieve Net Zero operations by 2050 and three key directions will contribute to this objective: decarbonize current operations, expand lower carbon gas business and pursue low and zero carbon business opportunities. OMV Petrom will build on its unique expertise and capabilities as the largest integrated energy player in South-East Europe. The company’s portfolio will be expanded to include five new zero and low carbon business activities, which together will account for EUR 3.7 bn investments, representing around 35% of cumulated CAPEX by 2030, and will contribute with approximately 15% to the total 2030 Clean CCS EBIT.
To provide customers with a range of lower carbon energy options, OMV Petrom aims to build a portfolio of renewable power assets, first initiating investments in solar photovoltaic technologies, that have a great potential in Romania. The company aims to put in function more than 1 GW of renewable power capacity in Romania by 2030. Diversifying and decarbonizing our fuels portfolio represents another important direction, with the production of biofuels and advancement of alternative fuels. OMV Petrom plans to exceed 15% biofuel from the total fuel production in 2030, with 150 kt/year of 2nd generation ethanol from hay straws and 450 kt/year of sustainable aviation fuel and renewable diesel. The low carbon mobility infrastructure will be developed, with more than 500 alternative fuel refill points (e-mobility, H2 solutions, LNG & CNG). In the second half of the decade, the company will intensify investments to seize opportunities on carbon capture, utilization and storage, as well as on hydrogen, which are anticipated to have a significant contribution to the decarbonization of the country.
For carbon capture, utilization, and storage, OMV Petrom aims to leverage its extensive expertise as upstream operator, also capitalizing on Romania’s onshore and offshore storage potential. In low-carbon hydrogen, OMV Petrom has the ambition to become an integrated player in the long-term, exploring various opportunities – from the production of blue, turquoise, and green hydrogen to utilizing hydrogen for own decarbonization, industry demand and as fuel for mobility.
The share of gas in the company’s hydrocarbon production mix will increase to around 70%, reflecting the pivotal role of natural gas as a transition fuel in the energy mix in Romania. The increase in equity gas will also support the country’s efforts to decarbonize, as gas can replace coal in power generation and enable integration of renewable capacities. Overall, the implementation of the 2030 strategy, with the strong commitment to energy transition, will lead to the reduction of carbon intensity throughout all business segments. Carbon intensity of our operations is expected to decline by around 30% while the intensity for Scope 1-3 emissions is forecast to drop by around 20% until 2030. We are targeting a reduction in our methane intensity to less than 0.2% by 2025, in line with international targets.
Our commitment to energy transition is supported at various levels within our organization, complementing the environmental governance processes already in place, the enhanced focus on low- and zero-carbon business. In 2021, we developed the New Energy Solutions (NES) unit within the Strategy and Corporate development group function, and reports to the CEO. The objective of the NES department is to enable and support OMV Petrom’s strategic ambition for 2030 to lead the energy transition in South-East Europe. In close collaboration with all relevant internal and external stakeholders, the NES unit facilitates the meaningful business transition towards a future where low emission technologies and innovative energy solutions are employed to reduce our own and our clients’ carbon footprint.
The progress on our promises and new targets
In OMV Petrom, the Executive Board members are informed regularly, at least quarterly, via Environmental Steering Committee, about environmental issues and performance on topics including climate change and energy transition, water management, present and upcoming environmental, climate, and energy-related policies and regulations, the status of environmental-related projects implementation as well as the progress on achieving sustainability-related targets. See also our Climate Change Risk Management approach.
According to Article 8 of the EU Taxonomy Regulation, OMV Petrom Group prepares a statement on its EU Taxonomy eligible and aligned activities indicating the related CAPEX, OPEX and turnover, and to publish this statement in the Group Sustainability Report. The EU Taxonomy statement is prepared annually: there are no interim reports prepared. For the 2021 reporting cycle, the eligible activities according to the EU Taxonomy Climate Delegated Act were identified taking into consideration the description of the listed eligible economic activities. For the detailed information about the process and the results, see EU Taxonomy Statement in this report.
Our carbon efficiency agenda focuses on process optimization and modernization, energy efficiency, using renewable energy, and delivering projects that reduce natural gas venting and flaring. Management of carbon efficiency in operations is incorporated into the sustainability governance process, as described in the Sustainability at OMV Petrom chapter of this report. The Executive Board approves carbon-related targets as part of the Sustainability Framework in our Business Strategy.
OMV Petrom commits to doing business economically, ecologically and socially sustainably. We will continue to uphold this commitment as it is the only way to protect and preserve security and prosperity in the long-term and to meet the need for cleaner energy.
As a major national energy player, we are committed to contribute to Romania’s transition to a low-carbon economy. OMV Petrom takes climate action in its operations, product and service portfolio, innovation and R&D activities, environment and social investments.
Our Climate change and energy transition approach and actions contribute to the following UN Sustainable Development Goals
- SDG 3 – target 3.9, by employing cleaner energy sources to ensure healthier lives
- SDG 7 – target 7.2 and target 7.3 by increasing our share of renewables and increasing efficiency
- SDG 8 – target 8.8 by having systems in place for labor rights and promotion of safe and secure working environments for all workers
- SDG 12 – target 12.4 by employing a more sustainable management and efficient use of natural resources
- SDG 13 – target 13.1 by increasing our resilience to climate change impacts, including scenario analysis.