OMV Petrom targets FID before end 2024 for green hydrogen plants in Romania

OMV Petrom, the largest integrated energy producer in South-eastern Europe, announces the signing of two financing contracts through the NRRP, for the construction of two production facilities for green hydrogen with a total capacity of 55 MW at the Petrobrazi refinery, said the company.

The contracts were signed with the Romanian Ministry of Energy for a maximum funding amount of EUR 50 million; the total investment is approximately EUR 140 million. The funding was obtained following the reopening, in July 2023, of the competitive call for projects supporting investments in green hydrogen, initially launched in 2022.

Christina Verchere, OMV Petrom CEO: "Through our Strategy 2030, we committed to support the energy transition in Romania and the region, with investments of around EUR 11 billion by the end of this decade, of which approximately 35% will support low- and zero-carbon projects. We have made great strides in renewables and electro-mobility projects, and with this project we are adding hydrogen to our portfolio of low carbon projects."

Radu Caprau, member of OMV Petrom's Executive Board, responsible for Refining and Marketing: "We are proud to be among the first green hydrogen producers in Romania. Green hydrogen, produced from renewable energy sources, is a viable solution for a low-carbon future. By developing these projects at Petrobrazi, we are taking important steps towards sustainable refining activity."

The projects consist of building two water electrolysis plants of 35 MW and 20 MW at the Petrobrazi refinery. The entire production process will be powered by renewable energy, therefore carbon-free, allowing the hydrogen obtained to be classified as green hydrogen.

The annual amount of green hydrogen to be produced by the two projects has been estimated at approximately 8 kilotons. Integrating green hydrogen into the production process of green fuels, such as sustainable aviation fuel and biodiesel, will lead to a CO2 emission reduction of minimum 70% compared to conventional fuels.

The projects are currently in the engineering phase aiming to reach final investment decision in 2024.

We remind, OMV has been reaffirmed as a sustainability leader by independent rating agencies in the fields of Environmental, Social and Governance (ESG). OMV recently attained a score in the 94th percentile of its industry in S&P Global’s annual Corporate Sustainability Assessment (CSA), leading to its inclusion in the prestigious Dow Jones Sustainability World Index (DJSI World) and DJSI Europe for the sixth consecutive year. The DJSI World represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index, based on long-term economic, environmental, and social criteria. OMV was also included in S&P’s Global Sustainability Yearbook 2024.

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Saudi Aramco and TotalEnergies SE contractor Hyundai Engineering & Construction Co. Ltd. has let a heater supply contract to Lummus Technology to provide eight proprietary Short Residence Time ethylene cracking heaters at joint venture Saudi Aramco Total Refinery & Petrochemicals Co.'s (Satorp) Amiral petrochemical complex in the Kingdom of Saudi Arabia, said the company.

Satorp has licensed multiple Lummus technologies at the Amiral complex including its ethylene, refinery off-gas recovery and treating, pygas hydrotreating, methyl tertiary butyl ether, isobutylene, butene and butadiene extraction technologies.

In July 2023, Hyundai Engineering & Construction Co. Ltd. was contracted for work on the complex’s mixed-feed cracker that will be equipped to produce 1.65 million tonnes/year (tpy) of ethylene and related industrial gases (OGJ Online, July 3, 2023). This contract also includes EPC for associated utilities, flares, and interconnecting systems to support the project’s other main packages.

Scheduled to begin commercial operations in 2027, the Amiral complex aims to provide feedstock to proposed petrochemical and specialty chemical plants slated to be built, owned, and operated in the Jubail industrial area by other global downstream investors for manufacturing, Aramco and TotalEnergies said.

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Hanwha TotalEnergies Petrochemical, a significant player in the South Korean petrochemical industry, has taken measures to increase the utilization of styrene production at its Daesan facility in Sosan, South Korea, said Chemanalyst.

This adjustment in production strategy comes in response to a technical breakdown that affected operations. The utilization of the production capacity, set at 400 thousand tons of styrene per year, has experienced a slight increase and is expected to maintain this level in the short term.

Previously, it was reported that Hanwha TotalEnergies Petrochemical, a major manufacturer of petrochemical products in South Korea, resumed styrene production at the Daesan complex in June 2023. This followed a period of scheduled repairs, during which the production, with a combined capacity of 650 thousand tons of styrene per year across both lines, had been temporarily halted on April 24.

Styrene, a key raw material in the production of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS), plays a crucial role in the plastics industry. The Daesan facility's resumed production aligns with Hanwha TotalEnergies Petrochemical's commitment to meeting market demands for these essential materials.

Hanwha Total Petrochemical, established in 2003 and headquartered in Seoul, South Korea, operates as a joint venture between Hanwha Corporation and Total S.A., each holding a 50% stake in the partnership. The company is engaged in the manufacturing of various petrochemical products, including polyethylene, polypropylene (PP), PP compounds, ethylene, propylene, benzene, and butadiene.

significant milestone in the company's history occurred at the end of November 2014 when the Samsung Group, the largest South Korean conglomerate, announced the sale of a controlling stake in its four petrochemical and defense divisions for USD 1.72 billion. This stake was subsequently acquired by the Korean industrial conglomerate Hanwha Group. In light of this acquisition, Samsung Total Petrochemicals underwent a name change on May 1, 2015, becoming Hanwha Total Petrochemical.

The strategic decision to enhance the utilization of styrene production at the Daesan facility underscores Hanwha TotalEnergies Petrochemical's commitment to operational efficiency and adaptability in addressing technical challenges. The short-term outlook for sustained production at the elevated capacity reflects the company's agility in managing disruptions and ensuring a stable supply to meet market demands.

Hanwha TotalEnergies Petrochemical's move to increase the utilization of styrene production at its Daesan facility represents a strategic response to a technical breakdown. This decision aligns with the company's broader commitment to maintaining a robust presence in the petrochemical industry and meeting the evolving needs of the market for essential materials like styrene. As operations resume at an optimized capacity, Hanwha TotalEnergies Petrochemical remains positioned as a key player in the South Korean petrochemical landscape.

We remind, in January, Hanwha Solutions implemented a 10% reduction in the utilization of caustic soda production at its facility in Yeosu, South Korea. The decision was driven by commercial considerations, although the duration of this reduced production load has not been disclosed. The facility boasts a production capacity of 873 thousand tons of caustic soda annually.

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Saudi Basic Industries Corp. (SABIC) denied plans to bid bid to acquire a stake in the Brazilian petrochemical company Braskem, said Argaam.

The company clarified in a statement today, Feb. 21, shared with Argaam, that media reports based on Brazilian newspaper Valor about the deal are incorrect.

SABIC emphasized its commitment to transparency regarding investment opportunities and the importance of using official channels for accurate information.

Brazil's Valor newspaper reported today that SABIC aims to acquire a stake in Braskem.

We remind, Saudi Basic Industries Corp. (SABIC), a prominent entity listed on the Saudi stock exchange, is gearing up to make a bid to acquire a stake in Braskem, a leading petrochemical company headquartered in Brazil. It is worth noting that SABIC is predominantly owned by Saudi Aramco, holding a significant 70% stake in its ownership. Contrary to previous speculations, SABIC plans to pursue an independent bid for the stake in Braskem and will not engage in a partnership with the Abu Dhabi National Oil Co. (ADNOC) from the United Arab Emirates (UAE) for this endeavor. Reports indicate that ADNOC has already initiated the due diligence process in connection with this potential transaction.

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Motiva Enterprises plans to restart the large coker at its 626,000 bpd Port Arthur, Texas, refinery within the next two weeks, said Hydrocarbonprocessing.

The 110,000-bpd DCU-2 coker was scheduled to restart by Feb. 15 from a planned overhaul that began on Jan. 8, according to the sources. The restart was delayed for needed repairs to valves and coke drums after the overhaul finished.

A Motiva spokesperson was not immediately available to discuss refinery operations.

Motiva could begin the coker restart as early as this weekend and complete the restart within a week, but the company is prepared to take up to two weeks to return the unit to full production, the sources said.

DCU-2 is the larger of two cokers at the Motiva refinery converting residual crude oil from distillation units into either motor fuel feedstocks or petroleum coke, which can be used as a coal substitute.

We remind, Motiva Enterprises is scheduled to shut the large CDU and large coker at its 626,000 bpd Port Arthur, Texas (U.S.). Motiva will shut the 350,000 bpd VPS-5 CDU and the 110,000-bpd DCU-2 coker for planned overhauls of the units expected to take 45 days to complete, said the three sources.

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