Neutralization Measures

We aim to reduce our carbon footprint to net zero by 2050 at the latest. While the biggest drivers on this journey will be decreasing our fossil fuel sales and increasing our zero-carbon product sales, we also recognize that neutralization measures, such as CCS/U or voluntary offsetting, will be necessary. By 2030, we aim to establish CCS capacities of around 5 mn t per year as our main neutralization measure toward achieving our targets. We will minimize the use of carbon credits for voluntary offsets as a contributor toward achieving our GHG reduction target. This is to ensure that we are not simply buying our way out of our responsibility to act on climate change and the energy transition.

Management and Due Diligence Processes

Offsetting Emissions

OMV’s customers can offset the carbon footprint resulting from using all products they purchase from us – diesel, gasoline, bitumen, heating oil, natural gas. OMV Gas offers this service in the Netherlands, Belgium, Germany, Austria, and Hungary. We recognize high and ever-increasing customer demand for this option. OMV Fuels Sales customers can offset their carbon footprint based on the use of gasoline or diesel, as well as extra-light heating oil and bitumen, in all countries where we operate. Customers of OMV Retail Mobility & Convenience (our filling stations) are able to offset their carbon footprint from gasoline and diesel by using loyalty points in Slovenia or the jö Bonus Club card in Austria. Our OMV Card customers can use their OMV Card with the Routex function to offset the carbon footprint of the diesel and gasoline they purchase.

OMV works closely with ClimatePartner, an internationally trusted service partner based in Munich. ClimatePartner selects certified carbon-offset projects and ensures that OMV customers who use this option are able to contribute a dedicated amount to these projects. We have defined a rigorous set of criteria and standards for the selection of climate protection projects to ensure optimal verification of emissions offsetting. For instance, the technologies we selected for climate protection in our projects are wind power and forest protection. Climate protection projects are verified according to the internationally recognized standards for voluntary emissions reduction: the Verified Carbon Standard (VCS) and the Gold Standard (GS). In 2021, verified emissions offset by customers totaled 115.7 kt CO₂e.

Carbon Capture and Storage (CCS) and Utilization (CCU)

OMV aims to capture CO₂ and ideally use it as a resource. Carbon capture and utilization technologies, such as capturing CO₂ emissions from our refineries, hydrating the CO₂, and then reusing it as fuel, are crucial to reducing overall atmospheric emissions and fostering circularity. However, achieving the goals of the Paris Agreement does not just require reducing our own emissions but also helping reduce atmospheric emissions from other sources. Thus, our CCS and CCU projects include, but are not limited to, capturing our own emissions. A key example of developing such projects with industry partners to reduce overall atmospheric emissions is the C2PAT project.

C2PAT, a joint project between Lafarge, VERBUND, OMV, and Borealis, aims to demonstrate a novel cross-sectoral carbon value chain at industrial scale. Industrial CO₂ released during cement production is captured (10 kt per year for demo plant) and transformed with green hydrogen into feedstock for a variety of renewable-based chemicals and value-added plastic products. The overall system is based on the integration and joint operation of various technologies that will be combined into one unique, holistic value chain. A facility cluster will comprise a carbon capture unit, a water electrolysis unit for the production of green hydrogen, and a new synthesis route via reverse water-gas shift reaction and Fischer-Tropsch synthesis located at the site of Lafarge’s cement plant in Mannersdorf. Intermediates will be processed into olefins and ultimately renewable-based value-added plastics at OMV and Borealis sites.

By demonstrating the feasibility of this technology, C2PAT will refine innovative operational and business models to develop a scale-up concept for the carbon value chain. The key innovation is using CO₂ emissions from cement production as a feedstock for petrochemicals – an integrated and cross-sectoral approach that has never been demonstrated before. C2PAT also demonstrates a circular economy approach in the cement and chemical sector given that renewable-based plastics can be reused and recycled in various recycling streams. C2PAT will explore the market potential for renewable-based products, and develop models for control as well as for holistically optimizing the overall value chain. Experience from the demo plant will be used to scale up the process. The next step would be a full-scale plant capable of converting more than 700 kt of CO₂ per year into renewable-based products. In the current initial phase, based on a co-signed MoU, the partners are evaluating and developing a joint strategy for project development and funding opportunities, business modeling and process engineering.

2021 Actions

In 2021, we worked on innovative solutions to utilize captured CO₂. For instance, shoe company On has partnered with Borealis and LanzaTech to create CleanCloud™, a sustainability initiative using carbon emissions to create foam for running shoes. On is the first company in the footwear industry to explore carbon emissions as a primary raw material for a shoe bottom unit, as part of its move away from petroleum-based resources. Technology from LanzaTech captures carbon monoxide emitted from industrial sources such as steel mills or from landfill sites. Once captured, these emissions enter a patented fermentation process, which converts the carbon-rich gas to liquid ethanol using specially selected bacteria. The ethanol is then dehydrated to create ethylene, which Borealis polymerizes to become EVA (a copolymer of ethylene vinyl acetate), the versatile and lightweight material that On starts working with to create a performance foam for shoes.

Outlook

As part of our strategy, we foresee developing CCS storage capacity of around 5 mn t per year CO₂ net to OMV by 2030; 2 mn t per year will be in OMV Petrom. We will continue to explore CCU possibilities.