Zero-Carbon Products

The scale-up of zero-carbon product sales while reducing fossil fuel sales is central to reducing the carbon footprint of our energy supply. Zero-carbon products include biofuels, power, mature renewable energy technologies such as e-mobility offerings, as well as new energy products. For instance, we contribute to the creation of a sustainable energy system with a dedicated team of interdisciplinary experts in Refining & Marketing who identify and mature solutions with a strong focus on hard-to-battery-electrify markets and customer segments, 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. The successful implementation of these projects will reduce emissions and create green, innovative products and services for society as well as provide a key differentiator for OMV.

Management and Due Diligence Processes

Responsible Biofuels Sourcing

All biofuels purchased by OMV in 2021 and used for blending meet the requirements of the EU’s Renewable Energy Directive (2009/28/EC). Since 2013, the ISCC-EU certificate issued for OMV Downstream GmbH has been renewed on an annual basis. OMV Petrom, OMV Hungary, OMV Czech Republic, and OMV Slovenia are also certified according to the ISCC-EU standard.

OMV purchases biodiesel (FAME) mainly from European producers that use very little palm oil. In 2021, of all biofuels placed on the market by OMV only around 2% were based on palm oil. Certain biofuels are almost exclusively available with palm oil as the feedstock. However, ISCC standards require that no deforestation takes place from January 2008 onward for any feedstock that is used for biodiesel generation. As of July 2021, OMV has also complied with the Austrian legal requirement to eliminate palm-oil-based biofuels completely.

We plan to increase the use of regional rapeseed oil and used cooking oil as well as other potential waste and advanced feedstock, which is made possible using our Co-Processing technology. Co‑Processing involves introducing biogenic feedstock during the fuel refining process instead of the conventional method of blending biogenic components into fuel after production. This concept allows OMV’s existing refineries to produce transportation fuels from various types of biogenic feedstock, such as domestic rapeseed oil, sunflower oil, used cooking oil, or future advanced oils. Utilizing this process leads to an annual reduction in OMV’s carbon footprint of up to 360 kt of CO₂.

In 2016 and 2017, OMV successfully conducted the first field trials of Co-Processing at the Schwechat refinery using rapeseed oil and obtained certification in accordance with the REDcert standard, an EU-recognized system for the certification of sustainable biomass. In 2020, another field trial was successfully completed at the Petrobrazi refinery. OMV continues to implement the Co-Processing technology, and by 2023, the Company aims to co-process approximately 200 kt of sustainable feedstock per year, depending on future legislation. It is important to note that there will not be any palm oil being co-processed. The project will start with a mix of vegetable oils (rapeseed oil and sunflower oil). It may include some other waste and residue streams, like used cooking oil, later on (2024–2025), if not from the very beginning. In December 2020, OMV committed to investing EUR 200 mn in the construction of a Co-Processing unit at the Schwechat refinery.

Selection of Projects

In Refining & Marketing, the New Business Implementation team identifies and matures solutions with a strong focus on hard-to-battery-electrify markets and customer segments. The portfolio focuses on 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 of green technologies. The minimum GHG reduction for a “green” project is defined by the regulatory requirements, such as the Renewable Energy Directive. All project ideas selected for maturing within these focus areas need to demonstrate a feasible trajectory from pilot and demo stage to full industrial scale in the medium term.

2021 Actions

Biofuels and Co-Processing

The following key activities were carried out across the Group in 2021:

Biofuel Volumes¹ 2020 figure restated and 2021 figure estimated as both Austria and Germany data are based on year-to-date actuals plus a forecast for the remaining months each year, given that the annual deadline for closing all biofuel balances of a given year is not before the publication of the Sustainability Report

In megaliters

• OMV and Austrian Airlines agreed on the production and fueling of 1,500 t of sustainable aviation fuel (SAF) in 2022. The sustainable fuel is produced at the Schwechat refinery by co-processing used Austrian cooking oil. The use of 1,500 t of SAF by Austrian Airlines will prevent emissions of around 3,750 t of CO₂. This compares to the CO₂ emissions of 333 Vienna-to-London flights with a typical short- to medium-haul AUA aircraft (Airbus A320).
• OMV launched OMV EcoMotion Diesel. This product contains up to 33% renewable components consisting of no more than 6.9% of FAME (fatty acid methyl ester) and about 26.1% of HVO (hydrotreated vegetable oil). With this large share of bio-components and through CO₂ offsetting of the remaining share, this 100% carbon-neutral diesel is the first of its kind in Austria. The conventional CO₂ share of OMV EcoMotion Diesel is offset in conjunction with ClimatePartner to support internationally recognized projects. (Read more in Neutralization Measures.) With 33% renewable content, OMV EcoMotion Diesel reduces greenhouse gas emissions by at least 20% to 25% compared to purely fossil-based diesel.

Biofuel Volumes¹ 2020 figure restated and 2021 figure estimated as both Austria and Germany data are based on year-to-date actuals plus a forecast for the remaining months each year, given that the annual deadline for closing all biofuel balances of a given year is not before the publication of the Sustainability Report.

In megaliters

Glycerin2Propanol

Using a patented process developed in-house, OMV made the final investment decision in 2021 to build a pilot plant at the Schwechat refinery that will produce second-generation biofuels from 2023. The plant involves advanced biofuels that are not in competition with foodstuffs. A typical refining process will see the waste-based substance glycerin turned into bio-alcohol, which when added to gasoline reduces its CO₂ footprint. The plant will use a catalyst, or reaction accelerator, developed in-house by OMV, to produce propanol (an alcohol) from glycerin. Glycerin is a byproduct or waste product from the production of bio­diesel, as well as the manufacture of detergents and soaps, but it is also considered an advanced feedstock under the European Union’s RED II (Renewable Energy Directive). The propanol produced in this way will then be used as a bio-additive for gasoline. It can also be used as a sustainable feedstock for the chemical market as a replacement for fossil-based propanol. OMV is set to invest around EUR 30 mn in this project. Of this, around EUR 6.9 mn will come from the Austrian Research Promotion Agency (FFG). Another source of funding is the COVID‑19 premium.

The Glycerin2Propanol pilot plant will be built at the Schwechat refinery alongside the ReOil®^® plant so that both units can utilize a single measuring station, exploiting synergy effects through a shared-operator concept. The Glycerin2Propanol pilot plant is expected to be operational in 2023. The capacity of the pilot plant will be 1.25 mn l of propanol per year. This will lead to a CO₂ reduction of around 1,800 t annually. A total of 1.2 l of crude glycerin is needed to produce 1 l of propanol. Under moderate temperature and pressure, 1 barrel (= 159 liters) of propanol will be produced per hour in an energy-efficient process. The long-term plan is to commercialize the technology in order to produce around 125 mn l of propanol per year and reduce CO₂ emissions by around 180 kt.

Besides this unique in-house development, we also partner with technology providers to develop viable business projects for transforming biomass from agriculture, municipalities, the paper industry, or wood processing into bioliquids to be used for greener fuels and chemicals.

Hydrogen

The following key activities were carried out across the Group in 2021:

• Together with our partner Kommunalkredit Austria AG, in February 2021, we announced a joint investment in the construction of Austria’s largest electrolysis plant at our Schwechat refinery. Total investment will be around EUR 25 mn, with OMV and Kommunalkredit each bearing half the cost. The plant is expected to go live in the second half of 2023. The 10 MW PEM (polymer electrolyte membrane) electrolysis system will produce up to 1,500 t of green hydrogen per year. The green hydrogen will be used to hydrogenate biobased and fossil fuels, substituting grey hydrogen in the refinery. This would reduce OMV’s carbon footprint by up to 15 kt of fossil CO₂ annually. The second step of the UpHy project will be to use the green hydrogen for decarbonizing “hard-to-electrify” transportation segments like buses and trucks. OMV aims to build a new H₂ filling station for buses and heavy-duty vehicles close to Vienna. This is the first project of its kind in Europe and aims to not only lower production costs but also to demonstrate the lowest downtimes and highest plant availability for commercial use in industry and mobility. In addition to the electrolysis system, OMV will build the entire value chain, including H₂ trailer loading, trailer logistics (using 300 bar trailers in Austria for the first time), and a high-availability, energy-optimized bus fueling station. One of the goals is to supply the first commercial H₂ bus line in Europe.
• To help create the conditions for the mass-market roll-out of hydrogen trucks in Europe, the H2Accelerate initiative, a consortium consisting of OMV, Shell, Daimler Truck AG, IVECO, and the Volvo Group was formed in 2020. In 2021, TotalEnergies and Linde joined the consortium. A large-scale roll-out of hydrogen-fueled trucks is expected to create new industries: zero-carbon hydrogen production facilities, large-scale hydrogen distribution systems, a network of high-capacity refueling stations for liquid and gaseous hydrogen, and production of the hydrogen-fueled trucks themselves. The decade-long scale-up is expected to begin with groups of customers willing to make an early commitment to hydrogen-based trucking. These fleets are expected to operate in regional clusters and along European high-capacity corridors with good refueling station coverage. During the next decade, these clusters can then be interconnected to build a truly pan-European network.

Sustainable Aviation Fuels

The third focus topic in the hard-to-electrify area – e-fuels – is the core building block of OMV’s Sustainable Aviation Fuel (SAF) portfolio and shows great potential for enabling climate-friendly air travel. Although the basic concept is simple – hydrogen produced with renewable electricity is combined with CO₂ – the production technology is still in the demonstration phase and requires further research and development for the required industrial scaling.

OMV works to mature this technology by engaging in various initiatives to demonstrate the large-scale industrial production of syngas (CO+H₂) via co-electrolysis of CO₂ and water. Syngas is the precursor for producing green fuels or other chemicals in a Power-to-X process. For instance, as leader of the Clean Tech Aviation consortium, we are assessing the feasibility of building an industrial plant for synthetic kerosene in Bavaria (Germany). A letter of intent was signed at the Bavarian Ministry of Economic Affairs and Energy (StMWi) in October 2021. This power-to-liquid plant is intended to be scalable and will start with a capacity of around 50 kt of renewable jet fuel per year. In addition to the StMWi and OMV Germany, the letter of intent was signed by a broad range of companies and institutions: Siemens Energy, MTU Aero Engines, MAN Energy Solutions, Lufthansa, Munich Airport, CAPHENIA, Bauhaus Luftfahrt, Reallabor Burghausen as well as the Technical University of Munich (Straubing Campus), and the German Aerospace Center (DLR).

Outlook

In the coming years, we will focus on implementing announced investment projects (e.g., UpHy and Glycerin2Propanol), and maturing project ideas in the areas of advanced biofuels and e-fuels. By 2030, we aim to produce and market at least 700 kt of sustainable aviation fuels yearly. OMV will also expand its capabilities to take advantage of the growth in e-vehicle charging. By investing more than EUR 400 mn by 2030, OMV will offer more than 2,000 e-charging points by 2030 at highway and transit route filling stations, plus around 17,000 office wall-box charging points by 2030.

Retail 2021² On December 14, 2020, OMV and EG Group reached an agreement for the acquisition of 285 filling stations in Germany by EG Group. The transaction is subject to required regulatory approvals and the closing is expected in 2022. On February 4, 2021, OMV announced its intention to sell its business in Slovenia, including around 120 filling stations. The closing of this transaction is also expected in 2022. As both transactions were not completed by the end of 2021, these filling stations are still displayed in the graphic.