Why is this important?
Reducing emissions from operations is an important strategic target for OMV Petrom, demonstrating our commitment to this essential topic, from our position of major energy supplier. CO2 emissions from our operations as well as methane add to the significant impact on climate change resulting from the use of fossil fuel products. The Scope 1, 2 and 3 emissions of OMV Petrom are all significant contributors to climate change and to the future of OMV Petrom and have a financial impact on our business.
Our renewed strategic commitment is to achieve Net Zero operations by 2050, and by 2030 to reduce our Scope 1 and 2 carbon emissions of our operations by ~30%, and by 20% for our total footprint including Scope1, 2 and relevant Scope 3 emissions. By 2025, our carbon intensity shall be reduced by 27% (vs. 2010).
We record our GHG emissions Scope 1, Scope 2 in Upstream and Downstream operations. Scope 3 relevant emissions are also reported.
Our GHG emissions occur along the entire value chain, so our mitigation measures include active decarbonization; our ambitious strategic targets of decreasing the GHG Intensity is set.
Our Environmental Management System EMS – ISO 14001 is regularly audited for recertification.
Our headquarters (HQ) representatives perform internal audits and quality data verification.
EU-ETS installations are externally verified by an accredited company, according to the relevant legislation.
Environmental training provided under the EMS includes GHG management.
Our planned actions include:
- Phasing out routine flaring and venting in Upstream by 2030.
- Energy efficiency improvements in Upstream and in Downstream Oil.
- Fugitive methane emissions reduction through process optimization, field modernization, and integrity improvement measures in Upstream.
OMV Petrom Upstream continued to implement projects to reduce GHG emissions. In 2021, our actions delivered reductions of flaring, venting and fugitive methane emissions thanks to modernization, replacement and/or optimization of gas processing and transportation infrastructure, as well as energy efficiency projects. Examples include:
- Modernization of the gasoline loading system at our Midia Terminal
- Install gas-to-power (G2P) units – in Pârâieni, Asset Oltenia, Park 3 Oarja – Asset Muntenia Vest and Tankfarm Băicoi Vest, in Asset Muntenia
- Rehabilitation/replacement of gas pipelines in Asset Muntenia Vest
Continuing Leak Detection and Repair program in all Assets, as well as the organization of Green Kaizen events. The Green Kaizen Events consist of five main activities: leaks identification, volumetric measurement of fugitive gas leaks, leak repairs, post-repair measurement in repaired sources and the assessment of results. These activities aim to set the employees’ minds to see the problem, understand the problem’s size, implement the solution, confirm the solution, and sustain the result.
An important contribution continued to be enabled by a dedicated Carbon Management Program team with focus on three main areas: carbon portfolio development, performance management, people awareness and mindset, analytics and data digitalization.
OMV Petrom Upstream is a pioneer in using fit for purpose technologies and applications for efficient use of energy and reduction of emissions. The G2P/CHP power plants mainly exploit the energy of the associated gases, that otherwise cannot be used, to obtain electricity and, in case of CHP applications, electricity and thermal energy for oil heating and separation processes. The obtained energy is exclusively used within OMV Petrom Upstream.
We have in operation 36 G2P and CHP power plants with a total installed capacity of 102 MW. In 2021, G2P Pârâieni (Asset Oltenia) was put in function with an installed capacity of 1.75 MW. Another two G2P power plants at Oarja (Asset Muntenia Vest) and Băicoi Vest (Asset Muntenia) have been also completed at the end of 2021. The latter two G2P projects are expected to deliver an emission reduction of around 45,000 t CO2eq against 2020 volumes.
Small Hybrid Energy Efficiency Projects
OMV Petrom initiated several small hybrid energy efficiency projects to use the renewable energy and make its facilities more energy efficient, as follows:
- Solar to Power (S2P) & Gas to Power (G2P) “pilot” project, at Icoana in Asset Muntenia Vest.
- Solar to Power (S2P) & Combined Heat and Power (CHP) in Asset Oltenia.
- Solar to Power (S2P) & G2P in Asset Moesia.
- Wind to Power (W2P) & CHP “pilot” project in Asset Moldova.
On the medium and long-term, the intention is to cover all the electricity needs of the OMV Petrom Upstream Division with similar projects.
In 2021, Downstream Oil continued to implement relevant low carbon projects, such as:
- Electro-mobility – 21 electric car recharging stations were operational in Romania and Bulgaria. We are expanding our network of recharging stations for electric vehicles in Moldova and Serbia. Thus, OMV Petrom becomes the first energy company in the region with a network of recharging stations in four South-Eastern European countries. The infrastructure for powering electric cars is being developed together with partners from the electric mobility sector. Romania, Bulgaria, Moldova and Serbia will be connected by the end of 2022 through a network of around 100 fast and ultra-fast recharging stations. A short waiting time for recharging will encourage the electromobility in the region. Our ambition to reach over 200 charging points for alternative fueled vehicles by 2025, and additional 500 such points installed in our network by 2030, was communicated in our new Business Strategy.
- The Climate Neutral Card is an initiative through which companies can become active in climate actions and contribute to offsetting carbon emissions resulting from fuel usage. In 2021, through the Climate Neutral Card, 31 companies were able to offset their carbon emissions. The Climate Neutral card is a unique product on the Romanian market and makes possible concrete actions to protect the environment and the communities.
In 2021, at Petrobrazi Refinery, we continued the implementation of actions to improve carbon efficiency by replacement of L571 furnace with a steam preheater in the Catalytic Reforming Plant 2 to reduce the energy consumption by 7993 GJ/year, equivalent with reduction of 178 tons/year gas fuel and reduction of 471 tons CO2eq /year.
Our 860 MW Combined Cycle Power Plant (CCPP) located in Brazi is equipped with state-of-the-art emission reduction equipment that enables it to rank below the EU CO2 emissions average. The Brazi Power Plant had a net electricity production of 4.788 TWh compared to 4.148 TWh in 2020. Since the commissioning date, this year’s electricity production has had the highest value; the power plant also contributed to the balancing market and system services, supported by its technical capabilities. Power generated from gas supports the transition to renewable power. In 2021, our net power production increased by 0.640 TWh, and the GHG intensity decreased by 1.13%.
The Power Plant in OMV Petrom City increased its thermal and electricity production by 2.34% in 2021 vs. 2020, in line with consumption needs.
Direct GHG Emissions (Scope 1)
In 2021, OMV Petrom’s carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) emissions levels directly related to our operations (Scope 1) totaled 4.01 mn t CO2eq, 5.4% lower (2020: 4.24 mn t CO2eq). The other GHGs are not relevant to our business and therefore have not been included in our figures. The scope of direct GHG emission cover all operated Assets and those with more than 50% stake, excluding the filling stations of which contribution is marginal.
We are subject to the EU Emissions Trading Scheme (EU ETS). Five of our operating installations were under EU-ETS at the end of 2021. Around 67% of our direct GHG emissions come from these EU-ETS installations and are externally verified by an accredited company, according to the relevant legislation.
Indirect GHG Emissions (Scope 2)
OMV Petrom’s indirect GHG emissions (scope 2) are those related to the production of the energy we purchased (electricity and heat) for our operations. In 2021, our indirect GHG emissions totaled 0.0939 mn t CO2eq (2020: 0.0936 mn t CO2eq.).
Our Scope 2 emissions are primarily driven by our energy-intensive Upstream and Downstream businesses. We will further explore the potential decrease in the electricity and steam purchased and increased use of own produced electricity and steam, as well as the purchase and use of electricity and steam from renewable sources.
Indirect GHG Emissions (Scope 3)
In 2021, our Scope 3 emissions were 23.33 mn t CO2eq (2020: 24.74 mn t CO2eq) and are related to the total product sales volumes of OMV Petrom as stand-alone company. The Scope 3 emissions from the use and processing of our products constitutes around 86% of our impact in terms of GHG emissions. The development of low-carbon products and new energy solutions to reduce this major impact is therefore in our focus to address the Climate Change and Energy Transition.
Reducing greenhouse gases will decrease our environmental impact and avoid costs associated with non-compliance with climate-related regulatory requirements while ensuring the efficient use of resources.
Scope 1 emissions totaled 4.01 mn t CO2eq
Scope 2 emissions totaled 0.0939 mn t CO2eq
Scope 3 emissions were 23.33 mn t CO2eq
See Performance in detail – Environmental Performance
Reduced the 2021 GHG Intensity of our operations in by 25% vs. 2010 and by 11% vs. 2019
No new project with routine flaring in 2021
Continued implementation of projects to phase out routine flaring and venting by 2030
OMV Petrom will continue the implementation of projects aiming at phasing out routine flaring and venting, as well fugitive methane emissions. In this regard, a portfolio of projects and measures was set up, consisting mainly in integrity, field modernization and process optimization projects.
Our planned energy efficiency projects also play a crucial role in reducing our carbon footprint. Examples of projects in 2022-2023 include E&P’s Energy Efficiency Program with 15 MW of G2P/CHP power plants and hybrid G2P/CHP (combined with solar or wind power), as well as the Petrobrazi Refinery’s Advanced Process Control System (APC) in Catalytic Reforming.
In 2022, 13 additional electric car recharging stations will be installed.