OMV recognizes climate change as one of the most important global challenges and fully supports the goals set forth by the Paris Climate Change Agreement. OMV integrates risks and opportunities related to climate change impacts into the development of the Company’s business strategy and the planning of operational activities. In this regard, OMV continuously improves the carbon efficiency of its operations and product portfolio, and is fully committed to supporting and accelerating the energy transition. We aim to become a net-zero business by 2050 or sooner.
OMV implements measures aimed at optimizing its operational processes, increasing energy efficiency, reducing flaring and venting, and reducing methane emissions through leakage detection and improvement of asset integrity. We will continue phasing out routine flaring and venting as soon as possible, but no later than 2030, as part of OMV’s commitment to the World Bank’s “Zero routine flaring by 2030” initiative. For instance, in Yemen, one of our most flaring intense operations, we commissioned two gas engines for power generation at the central processing facilities in December 2021. The gas engines will support the reduction of flaring as they will consume gas which was previously flared. They will also replace diesel generators, which further reduces GHG emissions. We are also increasingly turning to renewable sources of electricity to power our operations. In 2021, Borealis installed its first solar photovoltaic rooftop array for generating electricity for production purposes at the Borealis plant in Monza (Italy). The company has also signed long-term renewable energy supply deals for its assets in Sweden and Belgium.
A cornerstone of our climate strategy is increasing the share of zero-carbon products in our product portfolio as well as decreasing fossil fuel sales. Oil and gas production will be decreased to below 400 kboe/d by 2030.
OMV focuses on high-quality refinery products such as low-emission premium fuels and feedstocks for the chemical industry. We aim to increase polyolefins recycling and gradually replace fossil polyolefins production with production from biogenic feedstock. In addition, we also plan to significantly increase sustainable and biobased fuels and green gas sales, as well as build up renewable electricity production to around 10.0 TWh (including geothermal, solar/wind). We aim to step up the production of renewable fuels and sustainable chemical feedstocks to approximately 1.5 m t per year, including producing and marketing at least 700,000 t of sustainable aviation fuels per year.
For instance, OMV and Austrian Airlines (AUA) are producing and using regional Sustainable Aviation Fuel (SAF) in Austria. The two companies agreed on the production and fueling of 1,500 t of SAF in the coming year 2022. The use of 1,500 t of SAF by Austrian Airlines will reduce carbon emissions by around 3,750 t. This is equal to the CO2 emissions of 333 Vienna–London flights with a typical short to medium-haul AUA aircraft (Airbus A320).
Our climate targets can only be achieved with considerable effort and capital allocation. OMV Group has earmarked investments of more than EUR 13 bn for this purpose. All business units will build on existing strengths and expertise in this transformation journey.
In 2021, OMV achieved an outstanding CDP Climate Change score of A– (Leadership) for the sixth time in a row. With its CDP Climate Change score, OMV is among 20 companies in the global oil and gas sector that achieved a leadership score and among the top 7 companies across all sectors in Austria.