OMV Petrom has signed a five-year contract with Bulgaria’s Astra Bioplant to secure pre-treated used cooking oil for SAF production at its Petrobrazi refinery starting in 2028. Valued at over EUR 700 million, the agreement helps OMV Petrom secure over 80% of feedstock needed for its sustainable fuel plant.
OMV Petrom, Romania's leading oil and gas company, has entered into a significant supply agreement with Astra Bioplant, a Bulgarian producer of vegetable oils and biodiesel. The contract, announced on Thursday, secures the supply of pre-treated used cooking oil, which will serve as a key feedstock for the production of Sustainable Aviation Fuel (SAF) at OMV Petrom's Petrobrazi refinery. This step marks a strategic milestone in OMV Petrom’s transition towards sustainable energy solutions.
According to the statement submitted to the Bucharest Stock Exchange, the supply contract spans a five-year period beginning in 2028, with an option for a three-year extension. Deliveries of the pre-treated used cooking oil will commence in 2028, supporting the refinery’s SAF production goals. Pricing for the supply is determined by a formula linked to international market quotations, ensuring adaptability to market dynamics.
OMV Petrom emphasized that the agreement allows for the procurement of up to 0.6 million tonnes of feedstock, with an estimated contract value exceeding EUR 700 million (approximately $803.1 million), based on current market rates. This agreement complements a previous deal signed in June 2024 for pre-treated vegetable oil, enabling the company to secure over 80% of the necessary raw materials for the first eight years of SAF and Hydrotreated Vegetable Oil (HVO) production at the Petrobrazi facility.
The Petrobrazi refinery, located near Ploiesti in southern Romania, is undergoing a transformation with the construction of a new sustainable fuels plant. The facility, which began development in February, involves an investment of EUR 560 million and is scheduled to become operational in 2028. It will have an annual production capacity of 250,000 tonnes, supplying both SAF and HVO.
This major supply contract underlines OMV Petrom’s firm commitment to developing a long-term, sustainable feedstock supply chain for its low-carbon fuel initiatives. It also aligns with broader industry trends that aim to decarbonize the aviation sector through the use of renewable energy sources.
In terms of financial outlook, OMV Petrom has also demonstrated continued investment momentum. In April, the company approved a capital expenditure budget of 8.1 billion lei (around $1.847 billion or EUR 1.61 billion) for 2025, representing a more than 20% increase compared to the previous year. However, the company reported a net profit of 1.07 billion lei in the first quarter of 2025, marking a 24% decline year-on-year.
As of 14:11 CET on Thursday, OMV Petrom’s shares were trading 0.66% lower at 0.755 lei on the Bucharest Stock Exchange.
