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. OMV aims to transform into a net-zero business by 2050.

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. As part of OMV’s commitment to the World Bank’s “Zero routine flaring by 2030” initiative, we will continue to phase out routine flaring and venting as soon as possible, but no later than 2030. For example, in 2023, a combined heat and power unit that recovers gas that would otherwise be vented and/or flared was installed in the Padina production system in Asset Moldova. As a result, an emissions reduction of approximately 18,000 t CO₂e is expected during the first full year after implementation.

To reduce our Scope 1 emissions, we are increasingly turning to renewable sources of electricity to power our operations. For instance, in 2023, 13.5 GWh of renewable electricity was generated at the OMV and VERBUND photovoltaic park in Schönkirchen, Austria. The electricity was used for ongoing operations at Austrian E&P assets within the Energy business segment. In Romania, OMV Petrom’s Cosmești and Brădești solar parks produce nearly 4 GWh of solar energy annually, which will be used to supply electricity for its ongoing operations in its Romanian E&P assets. In addition, by the end of Q4/23, PV panels were installed at nearly 500 OMV and Petrom-branded filling stations. The electricity that will be produced from these installations annually is estimated at around 9 GWh.

To reduce our Scope 2 emissions, several Power Purchase Agreements (PPAs) with renewable energy providers were signed by the OMV Group in 2023. For instance, Borealis and Finnish energy company Fortum signed a long-term PPA to source renewable energy from two onshore wind parks. Starting mid–2024, 800 GWh of renewable power will be supplied to the Borealis production operations in Porvoo, Finland, over the course of eight years.

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- and low-carbon products, such as geothermal energy, hydrogen, and Sustainable Aviation Fuels.

In our Energy segment, the Low Carbon Business has been working on expanding our photovoltaic asset base, investigating solutions for subsurface energy storage, e.g., with hydrogen, and looking at options to explore and commercially develop geothermal energy potential in the countries where we operate. These projects are mainly in the R&D or initial investment phase.

In 2023, OMV and Wien Energie joined forces to deliver the heating transition. As part of a joint venture called “deeep,” both companies are working closely to make deep geothermal energy a reality in the greater Vienna area. The aim is to develop deep geothermal plants with an output of up to 200 MW, thereby generating climate-neutral district heating for the equivalent of up to 200,000 Viennese households. The partners are also planning to implement up to seven deep geothermal plants in Vienna as part of drilling programs. The first deep geothermal plant is to be realized together by the partners in the joint venture. The plant will generate up to 20 MW of climate-neutral district heating – in combination with heat pumps from Wien Energie. Approval procedures are currently underway and drilling is due to start toward the end of 2024. The plant is scheduled to go into operation in 2027. In addition, OMV acquired a 6.5% stake in Canadian privately owned Eavor Technologies Inc. (“Eavor”). Eavor is the leading closed-loop geothermal energy solution developer worldwide. OMV and Eavor also entered a commercial agreement to pursue large-scale deployments of Eavor-Loop™ technology in Europe and beyond. OMV’s initial focus will be on the deployment of Eavor-Loop™ in Austria and Germany.

OMV Petrom and Complexul Energetic (CE) Oltenia will begin the construction of four solar parks, which will provide a combined capacity of approximately 450 MW. The total investment required for the establishment of these four photovoltaic parks exceeds EUR 400 mn, with 70% of the funding coming from the Modernization Fund. The PV parks will be built in Ișalnița, Tismana, Roșia, and Rovinari, on the sites of the former mining operations managed by CE Oltenia. Based on current estimates, the PV parks should supply electricity to the national energy system from 2024 onward. In addition, OMV Petrom has signed an agreement to acquire a number of projects for the construction of solar parks in Teleorman county. The projects will go into the execution phase by the second quarter of 2024 and, with a total power output of 710 MW, will supply enough power for 280,000 Romanian households annually.

We are contributing to the creation of a sustainable energy system by identifying and maturing solutions, with a strong focus on markets that are hard to electrify such as heavy road transport or air travel. What these markets have in common is that they need an energy-dense yet climate-friendly fuel with the lowest possible downtime. Our portfolio focuses on waste-based and advanced biofuels, hydrogen, and e-fuels, as these offer the potential to utilize synergies with existing refinery assets and competences for a feasible scale-up and roll-out of green technologies. In 2023, OMV was already delivering SAFs to Air France-KLM, Ryanair, and the Associated Energy Group, LLC (AEG Fuels) at Vienna airport. Additional Memorandums of Understanding (MoUs) for the intended offtake of SAFs were signed with Air France-KLM and Ryanair in 2023. The total amount of intended SAF offtake between 2023 and 2030 is up to 160,000 t for Ryanair, up to 185,000 t for Wizz Air, up to 300,000 t for Air France-KLM, and more than 800,000 t for the Lufthansa Group.

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.