OMV takes next steps towards reducing carbon footprint
- OMV has already achieved its 2025 carbon intensity targets ahead of schedule and is setting new targets
- Net-zero emissions in operations is the ambition by 2050 or sooner
- By 2025, OMV will reduce the carbon intensity of its operations by at least 30%
- In absolute numbers, at least 1 mn metric tons of CO2 emissions will be reduced in the period 2020-2025 from operated assets
- Low/zero-carbon products to make up at least 60% of the portfolio by 2025
OMV, the integrated, international oil and gas company based in Vienna, started implementing its first carbon strategy more than ten years ago. During this period, projects to cut greenhouse gas emissions (GHGs) delivered a reduction of 1.8 mn t CO2 equivalent. The 2025 carbon intensity targets for OMV’s operations (-19%) and its product portfolio (-4%) were already achieved in 2019.
Having committed to the Paris Agreement and EU climate targets, OMV has now set new and more ambitious climate targets. OMV will reach net-zero GHG emissions of its operations (scope 1 and 2) by 2050 or sooner. The net-zero operations will be achieved through energy efficiency measures, new technologies such as carbon capture, carbon storage/utilization and hydrogen, as well as renewable electricity (like the photovoltaic plant in Austria) and portfolio optimization measures.
On the way to the long-term target, OMV is setting concrete intermediate goals. By 2025 a reduction of at least 60% for Upstream and at least 20% for Refining will be achieved (both compared to 2010). This means the carbon intensity groupwide (excluding Borealis) is to be reduced by at least 30%. Between 2020 and 2025, OMV intends to reduce its CO2-equivalent emissions in operated assets by at least 1 mn t.
In the total product portfolio, a share of at least 60% of low/zero-carbon products (including gas) is envisaged by 2025. The new target will result in a reduction in the carbon intensity of OMV’s product portfolio (scope 3) by at least 6% versus 2010, in comparison with the previous target of 4%.
OMV CEO Rainer Seele: “In our sustainability strategy, we are now stating a long-term ambition of net-zero emissions for the first time. On the one hand, this will require short-term optimizations. In the long run, however, we will also need to draw on new technologies such as carbon capture and utilization or storage. Implementing these sustainable technologies in a way that is economically feasible will require an appropriate regulatory environment.”
OMV will work together with stakeholders to significantly reduce the carbon footprint of its product portfolio long-term. OMV will increase the share of gas in its portfolio to achieve an immediate CO2 reduction. OMV’s equity oil will be used for petrochemical and chemical production (non-energy products) and applying circular plastics economy solutions. Furthermore, OMV will increase the share of alternative feedstocks (such as plastic waste, biofuel/waste, e-fuel/CO2, biogas, synthetic gas) for its products and will focus on hydrogen technologies to identify large-scale commercial applications for the future. Beside these measures, more research and development in some technologies is still needed to bring them to commercial scale (e.g. CCU).
With the Borealis transaction in 2020, OMV is transforming its product portfolio towards a higher share of non-energy products and repositioning itself for a low-carbon future. In addition, the OMV Group and Borealis aim to be a leader in the circular plastics economy (chemical and mechanical recycling). All in all, OMV and Borealis will invest EUR 1 bn in innovative solutions by 2025.
OMV will present its long-term vision for the product portfolio (including Borealis), more details of its strategic roadmap, and medium-term measures for achieving its targets at the strategy update in summer 2021.