OMV is fully committed to climate change mitigation and responsible resource management, and has consequently set targets to manage and reduce the carbon footprint of our operations and product portfolio. Reducing greenhouse gases will decrease our environmental impact and have a positive financial impact by improving compliance with climate-related regulatory requirements and ensuring the efficient use of resources. We strive to be regarded as one of the low-carbon leaders in the oil and gas industry.
Managing carbon and energy efficiency to enable sustainable growth
Today’s energy and climate policies present major challenges for the oil and gas industry. The industry has a primary responsibility to contribute to the security of energy supply as energy demand grows. Yet, in order to mitigate climate change, greenhouse gas (GHG) emissions must be reduced in all economic sectors. Tackling climate change includes reducing the amount of vented and flared gas, increasing energy efficiency and promote gas as the cleanest fossil fuel.
OMV Carbon Strategy
OMV defined its first Carbon Strategy in 2008. A key objective was to reduce direct GHG emissions from up- & downstream by 1 million t GHG emissions via efficiency improvements: In the period 2009-2019 we have achieved 1.8 million t GHG emissions savings.
In 2015 OMV revised its Carbon Strategy and has set a clear commitment to decrease the carbon intensity of its operations. We have set our carbon strategy objectives as follows:
- We aim to reduce carbon intensity of operations by 19 % until 2025 (vs. 2010) and the carbon intensity of OMV’s product portfolio by 4% until 2025 (vs. 2010)
- An internal carbon shadow price is introduced which is factored into the way we calculate the costs of projects.
- A zero routine flaring & venting policy for new projects and a phase out for existing routine flaring & venting latest until 2030 is introduced via the new OMV Group Standard Environmental Management and via endorsing the World Bank Initiative “Zero routine flaring by 2030”
- Transparency vis-à-vis investors with regard to OMV’s carbon performance; maintain a high CDP (formerly the Carbon Disclosure Project) score to attract Social Responsible Investors (SRI)
For detailed information about our achievements see OMV's current Sustainability Report.
OMV GHG Management
Effective carbon and energy management helps reduce costs and liabilities (energy, emissions certificates, etc.). OMV Corporate Environmental Management Department is responsible to generate OMV’s GHG inventory based on international standards and best practice. This ensures a consistent approach across the Group. The main tasks of the GHG management team are:
- to define, implement and manage the OMV carbon strategy process
- to monitor, calculate and report OMV’s GHG emissions
- to define OMV’s GHG reporting protocols and Tools
CDP (formerly the Carbon Disclosure Project)
CDP is a nonprofit organization which holds the largest collection of self-reported climate change data and is an important investment decision tool, especially for SRI investors. We report to CDP since 2011 and we have been among the top CDP performers in the Oil & Gas Industry for several years now.
In 2019 OMV has achieved a very good CDP climate scoring of “A-“ (leadership) and is among the top five companies which achieved a CDP leadership score of A/A- across all sectors in Austria. With this strong CDP result OMV shows a high level of transparency with regard to efforts for combating climate change, as carbon reduction target setting, carbon emission reductions through concrete measures and projects as well as external data verification.
OMV endorsed in January 2017 the World Bank Initiative “ Zero routine flaring by 2030” to end the routine flaring of associated gas during oil production. OMV’s endorsement of the Initiative is a clear commitment to responsible resource management and sustainable business practices linking environmental and economic objectives.
The Initiative was launched in 2015 by World Bank together with the former UN Secretary General Ban Ki Moon. The Initiative aims to eliminate the existing oil industry practice of routinely flaring gas at production sites by 2030, and to ensure new oil fields are developed with associated gas utilization solutions and without routine flaring or venting. According to World Bank flaring at oil production sites around the world causes more than 350 million tons of CO2 emissions every year. If the gas that is flared globally every year were used for power generation, it could provide about 750 billion kWh of electricity, or more than the African continent's current annual electricity consumption.
Based on OMV’s new Group Standard Environmental Management as well as the requirements from the endorsed World Bank Initiative OMV has to
- design new projects with no continuous and routine flaring and venting of gas
- end the legacy routine flaring and venting at existing operational sites through implementation of all viable solutions, as soon as possible, but no later than 2030.
- report its routine flaring data annually to World Bank.
OMV flaring and venting reduction projects
In the period 2009-2019 OMV has reduced its total direct CO2 emissions by nearly 1.8 million tons via a combination of flaring and venting reduction and energy efficiency projects. Further reduction will be achieved by utilizing innovative technologies at its oil production sites which reprocess/redirect the associated gas previously flared or vented for other diverse purposes, for example:
- OMV Petrom Upstream consumes the associated by-product gas to produce onsite electricity and heat via gas-to-power (G2P) and combined heat and power (CHP) plants.
- In Tunisia zero routine flaring in operated assets will be achieved with the OMV South Tunisia Gas Valorisation Project.
- In Yemen, OMV plans to implement the Habban field electrification project, where currently flared gas will replace the diesel for on-site electricity.
Head of Carbon Management
Climate neutral gas
OMV has made a commitment to support the goals for the Paris Agreement and the key climate change targets set by the EU Council for 2030. OMV strives to reduce the CO2 intensity of business operations by 19% (compared to 2010) until 2025. The gas share in the overall portfolio is to be increased to over 50%.
The voluntary offsetting of CO2 emissions is alongside with carbon reduction and prevention an integral part of the holistic approach to climate protection. OMV GAS offers the option to compensate CO2 emissions that results from gas consumption by emission certificates.
Find more information about OMV GAS here.