Romania: OMV Petrom Advances €560M SAF/HVO Unit at Petrobrazi
OMV Petrom is advancing a €560 million sustainable aviation fuel and renewable diesel project at Petrobrazi, strengthening Romania's position in the emerging sustainable fuels supply chain. The new unit is designed to produce 250,000 tonnes per year of sustainable fuels, with commissioning targeted for 2028.
The project will process vegetable fats and used cooking oils with green hydrogen to produce sustainable aviation fuel, or SAF, and hydrotreated vegetable oil, or HVO. For chemical traders, feedstock suppliers and industrial buyers, the development creates a significant new demand center for renewable raw materials while expanding the regional supply base for lower-carbon transport fuels.
Petrobrazi Project Reaches a Major Construction Stage
Construction of the SAF/HVO unit began in 2025 and has now moved beyond the foundation phase. OMV Petrom reports that the foundations have been completed while major equipment, including columns and reactors, has been delivered and installed.
The scale of the construction provides a clear signal that the project has progressed from investment planning into physical execution. Equipment installed at the refinery includes structures reaching approximately 60 metres in height, while around 20,000 cubic metres of concrete have been used for the completed foundations.
For suppliers, the project also matters because it connects new sustainable fuel capacity with an existing refinery infrastructure. OMV Petrom plans to integrate the new unit with Petrobrazi's established fuel production, storage and distribution systems.
What the €560 Million SAF/HVO Unit Will Produce
The core facility will have annual production capacity of 250,000 tonnes. Its flexible design allows OMV Petrom to adjust the mix of SAF, HVO and other renewable products according to market requirements and available feedstocks.
The planned output has several important applications:
Sustainable aviation fuel: SAF provides an alternative fuel pathway for aviation, a sector where conventional liquid fuels remain difficult to replace at scale.
Renewable diesel: HVO can serve applications that use diesel-type fuels and can integrate with existing fuel infrastructure.
Bio-naphtha and bio-LPG: The flexible processing configuration can also generate renewable hydrocarbon products used in other industrial and chemical applications.
The ability to modify the product mix gives the facility additional commercial flexibility. It can respond to changes in demand, feedstock availability and regional market conditions rather than depending on a single output stream.
Renewable Feedstocks Create a New Procurement Opportunity
Feedstock availability will remain central to the economics and operating reliability of renewable fuel production. Petrobrazi's new unit is designed to process vegetable fats and used cooking oils, with green hydrogen supporting their conversion into sustainable fuels.
OMV Petrom has already made progress in securing raw material supplies. Company disclosures indicate that more than 80% of the feedstock requirement for the first eight years of operation has been secured, providing an important foundation for the planned 2028 start.
For traders and suppliers, this highlights several areas to watch:
Used cooking oil collection: Reliable access to waste-based oils can become increasingly valuable as renewable fuel capacity expands.
Vegetable oil supply: Refined and suitable vegetable-based feedstocks can support flexible renewable fuel production.
Feedstock traceability: Documentation around origin, sustainability characteristics and chain of custody can become increasingly important for international buyers.
Long-term supply contracts: Large-scale renewable fuel projects can encourage structured procurement agreements rather than relying exclusively on spot transactions.
The sourcing strategy also shows why renewable feedstocks should be viewed as industrial commodities with increasingly sophisticated procurement requirements.
Green Hydrogen Adds Another Layer to the Supply Chain
The SAF/HVO project forms part of a broader €750 million program at Petrobrazi. Of that total, €560 million covers the sustainable fuels unit while €190 million is allocated to two green hydrogen production facilities.
In August 2026, OMV Petrom announced delivery of all modules for a second 35 MW electrolyzer. Together with an earlier 20 MW electrolyzer, the refinery's planned green hydrogen capacity has reached 55 MW.
The two hydrogen projects are expected to produce approximately 8,000 tonnes of green hydrogen annually. The hydrogen will support refinery processes including SAF and HVO production, creating an integrated renewable fuel system at the Petrobrazi site.
This integration matters commercially because hydrogen becomes part of the same procurement and operating ecosystem as renewable oils and fats. It also reduces the need to treat sustainable fuel production as a standalone processing operation.
Why the Project Matters for Southeast European Fuel Markets
Petrobrazi already has an annual crude processing capacity of approximately 4.5 million tonnes and supplies around 35% of Romania's fuel demand. Adding 250,000 tonnes of annual sustainable fuel capacity therefore gives the refinery a significant new role in the regional renewable fuels market.
OMV Petrom describes the facility as positioning the refinery as the first major producer of sustainable fuels in Southeast Europe. The company expects the project to contribute to the region's demand for lower-carbon fuels in sectors where direct electrification remains challenging.
The project also has implications beyond Romania. OMV Petrom has already secured a sales agreement covering part of its future SAF and HVO output, with deliveries scheduled to begin in 2028. The agreement covers a maximum total quantity of 360,000 tonnes over five years, with at least 200,000 tonnes allocated to SAF, subject to the contract terms.
That development points to a regional market in which production capacity, feedstock contracts and downstream fuel demand are becoming increasingly connected.
What the 2028 Start-Up Could Mean for Buyers
For procurement teams, the Petrobrazi project creates several factors worth monitoring before commercial operations begin.
Feedstock competition may increase. As more renewable fuel facilities enter production, suppliers of used cooking oils, vegetable fats and other eligible feedstocks could face stronger demand from European producers.
Product specifications will matter. SAF and HVO supply contracts require clear quality parameters, delivery schedules and sustainability documentation. Buyers should assess these requirements alongside price when evaluating potential supply relationships.
Regional logistics could become more important. Petrobrazi's existing refinery, storage and distribution infrastructure provides an established platform for moving finished products into Romanian and wider Central and Eastern European markets.
Long-term contracts may shape availability. With a significant share of initial feedstock already secured and part of future production committed under a sales agreement, available spot volumes could differ from headline production capacity.
For chemical traders and commodity intermediaries, the project therefore represents more than a new refinery unit. It signals the development of a connected market for renewable feedstocks, green hydrogen and sustainable fuel products.
Lower-Carbon Fuel Production and Market Flexibility
OMV Petrom states that the SAF and HVO produced through the new unit can reduce CO₂ emissions by at least 65% compared with traditional fossil fuel alternatives over the relevant life cycle.
The project's flexible feedstock and product configuration is equally important. Instead of locking the refinery into one renewable raw material or one finished product, the facility can adjust its operations based on feedstock availability and market demand.
That flexibility can help procurement teams manage exposure to changing commodity conditions. It also creates potential demand for a wider range of renewable raw materials and intermediate products as European sustainable fuel markets mature.
The integration of green hydrogen adds another strategic dimension. Hydrogen produced through electrolysis using renewable electricity can support the conversion of oils and fats into fuels compatible with existing infrastructure.
What Buyers Should Do Now
The Petrobrazi SAF/HVO project gives buyers a clear reason to track renewable feedstock markets ahead of 2028. Companies supplying vegetable oils, fats or waste-derived feedstocks should pay particular attention to sustainability documentation, traceability and consistent quality.
For fuel buyers and traders, the key considerations include:
Monitor production progress: Equipment installation and commissioning milestones can provide early signals about future availability.
Track feedstock markets: Vegetable oils and used cooking oils can influence renewable fuel production economics and supply security.
Review regional demand: Romania and neighboring Central and Eastern European markets may become increasingly connected to new sustainable fuel production.
Build supplier relationships early: Long-term contracts may account for a substantial share of future renewable fuel and feedstock volumes.
Follow product flexibility: The ability to shift between SAF, HVO and renewable by-products could affect commercial availability across different market segments.
OMV Petrom's €560 million investment at Petrobrazi represents a major expansion of sustainable fuel production capacity in Romania, backed by an integrated green hydrogen program and established refinery infrastructure. With construction progressing and commissioning targeted for 2028, procurement teams should monitor both the project timeline and the renewable feedstock markets that will support its operation. Ready to source sustainable aviation fuel (SAF) from verified global suppliers? Explore competitive offers on our platform today.
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