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OMV Petrom has signed a deal to buy a 50 percent stake in Respira Verde, a Romanian used cooking oil collection specialist, for its biofuels production.
OMV Petrom said in a press release it expects to close the transaction in the first quarter of 2024 after the fulfilment of conditions including the clearance of the Competition Council and of the Commission for Screening of Foreign Direct Investments.
Used cooking oil is one of the main renewable feedstocks to produce sustainable aviation fuel (SAF) and biodiesel (hydrotreated vegetable oil – HVO1), helping reduce carbon emissions within the transportation sector, OMV Petrom noted. By using SAF, CO2 emissions from commercial flights are approximately 80 percent lower than conventional fuel, it said.
“We are looking for the best solutions to reduce emissions, and biofuels offer an opportunity to decarbonize transportation. One of the targets of our 2030 strategy is for biofuels to account for more than 15 percent of total fuel production. Through this transaction, we take a first step towards ensuring our access to the raw material necessary to produce biofuels and open up the prospect of integrating the circular economy into our core activities”, Radu Caprau, member of OMV Petrom’s executive board, responsible for refining and marketing, said.
Founded 12 years ago, Respira Verde collects up to 10,000 tons of used cooking oil per year from companies active in sectors such as hospitality and retail. The company has its own transport fleet, and it operates two main warehouses, in Bihor and Ialomița. It aims to expand its activity to other European markets in the near future, OMV Petrom said.
“Through this transaction, we join OMV Petrom in its efforts to reduce emissions and produce sustainable fuels. We share the same goals regarding the used cooking oil market, and we believe that together we will increase the collection rate in Romania and the region,” Ionut Popsea, Respira Verde cofounder, said.
OMV Petrom said it has taken important steps to increase the share of biofuels. In 2022, Petrobrazi became the first ISCC2-certified refinery in Romania, capable of producing SAF and HVO by co-processing biological feedstocks. OMV Petrom is considering expanding its production capacity to produce sustainable fuels from a wide range of residual feedstocks, such as used cooking oil, the company said.
OMV Petrom is a company in which Romanian shareholders hold over 42 percent of the shares. OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.2 percent stake in OMV Petrom, while the remaining 6.4 percent is held by other foreign investors.
To contact the author, email andreson.n.paul@gmail.com
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