Romania's OMV Petrom Signs Biofuel Supply Contract Worth Over €800 Million

en.Wedoany.com Reported - OMV Petrom SA has signed a sales contract with OMV Downstream, a wholly-owned subsidiary of OMV AG, covering the future production of sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) at the Petrobrazi refinery.

The contract has a term of five years, with an option to extend for an additional five years, and deliveries are scheduled to begin in 2028. The pricing is based on a formula linked to international quotations, with transaction details adhering to the arm's length principle.

The maximum total supply volume under the contract is 360,000 tons, of which at least 200,000 tons is SAF. Based on recent market quotations, the total contract value exceeds €800 million.

This transaction allows OMV Petrom to secure a portion of its future biofuel product sales to other airports in Central and Eastern Europe while maintaining flexibility to capture additional opportunities in the Romanian market and the region. The company will continue to maintain its position as one of the largest SAF suppliers to Romanian airports.

OMV Petrom's current total investment in the SAF/HVO project at Petrobrazi is €750 million, of which €560 million is allocated for the construction of the SAF/HVO production unit and €190 million for the construction of two green hydrogen production facilities. The new SAF/HVO unit has an annual capacity of 250,000 tons, with feedstock security exceeding 80% for the first eight years.

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