Romania - OMV Petrom Commits EUR560M to a Sustainable Fuels Unit at Petrobrazi

OMV Petrom is investing EUR 560 million in a new sustainable fuels production unit at its Petrobrazi refinery in Romania, advancing one of the region’s major projects for sustainable aviation fuel and renewable diesel. The facility is being developed with an annual production capacity of 250,000 tonnes and is scheduled to begin production in 2028.

Major Investment in Sustainable Fuels

The new unit forms part of OMV Petrom’s wider transformation of the Petrobrazi refinery. The company’s overall SAF/HVO program involves approximately EUR 750 million in investment, including EUR 560 million for the sustainable fuels unit and EUR 190 million for two green-hydrogen production facilities.

Construction of the sustainable fuels unit began in 2025. As of September 2026, OMV Petrom reported that the foundations had been completed and major equipment, including processing columns and reactors, had been delivered and installed at the refinery.

What Will the New Unit Produce?

The facility will manufacture Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO), also known as renewable diesel. Depending on market demand and feedstock availability, the flexible installation can also produce bio-naphtha and bio-LPG.

SAF is designed for use in aviation as a lower-carbon alternative to conventional fossil-based jet fuel, while HVO can be used as a renewable alternative to conventional diesel. Both fuels are particularly relevant to sectors where direct electrification can be difficult.

Renewable Feedstocks and Green Hydrogen

The Petrobrazi project will use renewable feedstocks such as vegetable fats and used cooking oils. These materials will be processed using green hydrogen to produce fuels with properties similar to conventional aviation fuel and diesel.

Green hydrogen is an important part of the project because it supports the processing of renewable oils into sustainable fuels. OMV Petrom is developing two green-hydrogen facilities with a combined installed capacity of 55 MW and expected annual production of around 8,000 tonnes.

Focus on Lower-Carbon Transportation

The investment is aimed at supporting the transition toward lower-carbon transportation. According to OMV Petrom, the SAF and HVO produced through the project can reduce CO₂ emissions by at least 65% over their life cycle compared with conventional fossil fuels.

The impact could be particularly relevant for aviation and heavy transport, where replacing conventional fuels with electricity remains technically challenging in many applications.

Strengthening Romania’s Sustainable Fuel Supply

The Petrobrazi project is also intended to increase domestic production of sustainable fuels. OMV Petrom has said the investment can help replace some imported biofuels with products manufactured in Romania.

The company has already taken steps to secure feedstock for the future facility. In June 2026, OMV Petrom reported that more than 80% of the feedstock required for the first eight years of operation had been secured.

Progress at Petrobrazi

Construction and equipment installation are progressing at the refinery. OMV Petrom reported in September 2026 that around 20,000 cubic meters of concrete had been used for the foundations, while equipment reaching heights of up to 60 meters had already been installed.

The next stages include continued equipment installation, connecting the new facilities with Petrobrazi’s existing infrastructure and carrying out extensive testing and verification before startup.

Production is currently planned for 2028.

Green Hydrogen Adds Another Dimension

The green-hydrogen component further expands the scope of the Petrobrazi transformation. In March 2026, OMV Petrom announced the delivery of the first electrolyser module for a 20 MW green-hydrogen project at the refinery. The hydrogen will be produced through water electrolysis using renewable electricity and used in the production of SAF and HVO.

The company has described the combined project as part of its strategy to transform Petrobrazi into a major sustainable-fuels production hub in Southeastern Europe.

Future Market Opportunities

OMV Petrom is also preparing for future demand for sustainable aviation fuel and renewable diesel. In June 2026, the company announced a five-year agreement, with an option for extension, covering part of the future SAF and HVO production from Petrobrazi. Deliveries are scheduled to begin in 2028.

The agreement provides a route to market for part of the future production while allowing OMV Petrom to retain flexibility to serve customers in Romania and other markets across Central and Eastern Europe.

Looking Ahead

The EUR 560 million SAF/HVO unit represents a significant change in the product mix planned for the Petrobrazi refinery. Rather than focusing exclusively on conventional petroleum products, the facility is being expanded to include sustainable fuels made from renewable feedstocks.

With construction progressing and major equipment already installed, the next important milestones will be completing the remaining construction work, integrating the new facilities with the refinery and preparing the unit for startup in 2028.

Conclusion

OMV Petrom’s EUR 560 million investment in a sustainable fuels unit at Petrobrazi is a major component of Romania’s emerging renewable-fuels infrastructure. The facility is expected to produce 250,000 tonnes of SAF and HVO annually, using renewable feedstocks and green hydrogen.

The wider EUR 750 million program, which also includes green-hydrogen production facilities, is designed to support the development of lower-carbon fuels for sectors such as aviation and heavy transport. With construction advancing toward a planned 2028 startup, Petrobrazi is becoming an important part of OMV Petrom’s strategy to expand sustainable fuel production in Southeastern Europe.