Climate Change

OMV recognizes climate change as one of the most important global challenges and fully supports the goals set forth by the Paris Agreement. OMV integrates risks and opportunities related to climate change impacts into the development of the Company’s business strategy and the planning of operational activities. In this regard, OMV continuously improves the carbon efficiency of its operations and product portfolio and is fully committed to supporting and accelerating the energy transition. We aim to become a net-zero business by 2050 or sooner.

OMV implements measures aimed at optimizing its operational processes, increasing energy efficiency, reducing flaring and venting, reducing methane emissions through leakage detection and repair, and improving asset integrity. We will continue phasing out routine flaring and venting as soon as possible, but no later than 2030, as part of OMV’s commitment to the World Bank’s “Zero routine flaring by 2030” initiative. For example, in late 2022, a new gas treatment station for Low Temperature Separation (LTS) at a Romanian E&P asset was brought on stream. As a result, gas that would normally be flared is captured and made available for sale. Consequently, through the aforementioned approach for example, GHG emissions are estimated to be reduced by 24,000 t CO₂e from 2023 onward due to the elimination of routine flaring.

We are also increasingly turning to renewable sources of electricity to power our operations. In Austria, following the realization of Phase II of the OMV and VERBUND photovoltaic park at Schönkirchen, 12.9 GWh of renewable electricity was produced. It is estimated that throughout the year 15.84 GWh of renewable energy will be produced. In Romania, OMV Petrom completed the installation of PV panels at its first solar park. The park includes nearly 1,000 PV panels installed over an area of 5,500 m². The green energy produced will be used to supply electricity for ongoing operations in the E&P segment. Also by the end of Q4/22, PV panels were installed at 380 OMV and OMV Petrom-branded filling stations. The electricity produced from these installations annually is estimated at 7,000 MWh. In parallel, several Power Purchase Agreements (PPAs) with renewable energy providers were signed by OMV Group in 2022. For instance, in October 2022, Borealis and Axpo Nordic, a subsidiary of Switzerland’s largest renewable energy provider, signed a wind PPA, which includes the annual supply of more than 130 GWh of wind power to the Borealis production location in Stenungsund (Sweden) over the next ten years. The electricity will be generated by a new onshore wind farm located in central Sweden, with delivery expected to start in January 2024.

A cornerstone of our climate strategy is increasing the share of zero-carbon products in our product portfolio, as well as decreasing fossil fuel production and sales. Oil and gas production will be decreased to around 350 kboe/d by 2030. Growth will instead come from zero-carbon products, such as geothermal energy, hydrogen, and Sustainable Aviation Fuels. In our E&P segment, we will build up around 10 TWh of renewable energy production (including geothermal, PV, and wind). In 2022, OMV made headway in the development of two geothermal projects: one in Austria, the other in Germany. In Austria, OMV conducted a production and injection test to analyze the geothermal potential in the Vienna Basin. Regional and local geological studies have been progressing, and potential locations for geothermal power plants have also been selected. In Lower Saxony (Germany) OMV and partner ZeroGeo Energy GmbH have an equal interest of 50% each in a geothermal exploration project called Thermo. The initial project aim is to collect geological data, in particular gravity and magnetic measurements, over an area of approximately 5,000 km². The data collected will be used to assess the geothermal energy potential and will be part of a comprehensive evaluation of future geothermal activities in the area. Based on preliminary studies, subsurface experts indicate that the geothermal conditions in the Vienna Basin are suitable for use as a direct heat carrier. In northern Germany, the geothermal energy could be used to generate electricity.

We aim to step up the production of renewable fuels and sustainable chemical feedstocks to approximately 1.5 mn t per year, including marketing at least 700,000 t of Sustainable Aviation Fuels (SAFs) per year. In 2022, three Memorandums of Understanding for the intended offtake of SAF were signed with Lufthansa Group, Ryanair, and WizzAir. The total amount of intended SAF offtake between 2023 and 2030 is more than 800,000 t for the Lufthansa Group, up to 160,000 t for Ryanair, and up to 185,000 t for WizzAir.

Our climate targets can only be achieved with considerable effort and capital allocation. The OMV Group has earmarked investments of more than EUR 13 bn by 2030 for this purpose, representing around 40% of organic CAPEX over that period. All business units will build on existing strengths and expertise to contribute to this transformation.