OMV Petrom steps towards green future with renewables and electromobility deals

Southeast Europe’s biggest integrated energy company OMV Petrom has agreed to buy a 50% stake in Electrocentrale Borzesti, owner of renewable projects with capacity of around 1 GW, from RNV Infrastructure. 

OMV Petrom will also fully acquire Renovatio Asset Management, the proprietor of Romania's leading electric vehicle (EV) charging network, which has over 400 charging points across the country, with plans to expand to approximately 650 by 2026.

“With these transactions we progress significantly towards building a strong and diversified portfolio of renewable projects,” said Christina Verchere, CEO of OMV Petrom. 

“Our ambition is to maintain our leadership position in the energy field in South-Eastern Europe, while transforming the business for a lower carbon future.”

OMV Petrom is currently a major player in the hydrocarbons sector with the group producing approximately 43mn barrels of oil equivalent (boe) in 2022. It has refining capacity of 4.5mn tonnes a year annually and operates an 860-MW high-efficiency power plant. It is also active on the oil products retail markets in Romania and neighbouring countries, with around 780 filling stations under the OMV and Petrom brands.

However, under the newly established partnership, OMV Petrom and renewables-focussed infrastructure asset owner and manager Renovatio aim to invest approximately €1.3bn by 2027, inclusive of project financing, in Romanian renewable initiatives. OMV Petrom's financial commitment for the acquisition and construction of these projects is estimated to reach up to €350mn, the company said in a press release.

Electrocentrale Borzesti’s existing portfolio comprises 950 MW of wind projects and 50 MW of photovoltaics. In collaboration with RNV Infrastructure, these projects will undergo further development, construction and operation.

The conclusion of these transactions is anticipated in the first half of 2024, contingent upon the fulfillment of specific conditions. 

After acquiring 50% of the largest wind power portfolio in Romania, OMV Petrom will construct four wind parks and a photovoltaic park in the northeastern part of the country, the company said. The park is expected to supply electricity to the national energy system from 2024, with wind parks gradually commencing production between 2025 and 2027. The projects have already secured access to the electricity network.

With the full ownership of Renovatio Asset Management, OMV Petrom is poised to become the foremost player in e-mobility in Romania, adding over 400 charging points to the existing network. 

As of the end of 2023, OMV Petrom's regional network featured approximately 270 charging points, including those established through partnerships. The expansion of the e-mobility network aligns with the company's commitment to contribute to the decarbonisation of transport in Romania and the broader region, according to OMV Petrom’s press release.

Aurel Arion, CEO of Renovatio, commented that the joint projects will "deliver green energy in Romania, along with continuing the sustainable development of electric mobility services”.

"We strongly believe that together, by combining our strengths and values, we will contribute to achieving the objectives of the European Green Deal, as well as a healthier environment for the industry and the community,” Arion added.