Information on the target
OMV Petrom has taken a significant step towards securing a reliable source of raw materials for biofuel production by signing an agreement to acquire a 50% stake in "Respiră Verde SRL," a leading Romanian company specializing in the collection of used cooking oil. This strategic move aligns with OMV Petrom's 2030 strategy, which aims for biofuels to constitute over 15% of the group's total production. The transaction is expected to close in the first quarter of 2024, pending regulatory approvals from the Competition Council and the Commission for Screening of Foreign Direct Investments.
Founded 12 years ago, "Respiră Verde" is recognized for its efficient collection of up to 10,000 tons of used cooking oil annually from various sectors, including hospitality and retail. The company operates its own transport fleet and manages two primary warehouses located in Bihor and Ialomița, with plans to expand its operations into other European markets in the near future.
Industry overview in the target’s specific country
The biofuels industry in Romania is experiencing a transformative phase, driven by increasing demand for sustainable energy sources and regulatory support for renewable fuels. The Romanian government has implemented policies aimed at promoting the use of biofuels, which are seen as essential for reducing greenhouse gas emissions and achieving energy independence. As a member of the European Union, Romania is also aligned with EU directives that mandate a significant increase in the share of renewable energy in the transportation sector.
Used cooking oil is emerging as a critical feedstock for the production of sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO), both of which are pivotal in the transition towards greener transportation solutions. The adoption of SAF can lead to a reduction of approximately 80% in CO2 emissions compared to conventional aviation fuels, making it a vital component in the fight against climate change.
In recent years, Romanian companies have begun to recognize the economic potential of biofuels, with investments flowing into the sector to enhance production capabilities and collection infrastructure. The growing awareness of environmental issues among consumers and businesses alike is further propelling the demand for sustainable fuel alternatives, positioning Romania as a key player in the regional biofuels market.
As the largest integrated energy company in Southeastern Europe, OMV Petrom is at the forefront of this industry shift, actively working to increase its biofuel production capacity and integrate …