Vienna-based integrated chemicals, fuels and energy company OMV announced today a new €450 million (USD$514 million) loan agreement with the European Investment Bank (EIB), to help fund the construction of one of the largest green hydrogen production plants in Europe.
The new 140 MW plant, located in Bruck an der Leitha, is currently under construction and scheduled to commence operations by the end of 2027. The facility is expected to produce up to 23,000 tons of green hydrogen annually, significantly contributing to the decarbonization of the OMV Schwechat refinery in Lower Austria. Total investment in the plant is anticipated at €600 million.
OMV said that the new facility will enable the local production of green hydrogen and significantly enhance the sustainability of fuel and chemical products at the refinery. The company estimates that the plant will reduce carbon emissions by approximately 150,000 tons per year, equivalent to around 10% of the refinery’s current direct emissions.
According to the company, the project forms part of OMV’s “Strategy 2030” to shift from oil & gas production to renewable fuels and circular solutions and become a net zero emissions company by 2050.
Reinhard Florey, Deputy Chairman of the Executive Board and Chief Financial Officer of OMV, said:
“Producing green hydrogen in Austria enables us to increase the captive use of more sustainable energy in our production and for our innovative products. The construction of one of Europe’s largest green hydrogen plants marks a major milestone in the decarbonization of our industrial processes and underscores our ambition to actively shape the energy transition in Austria and beyond.”
Green hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for industrial and transport sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical.
Around 90 million metric tons of hydrogen are produced annually, although the vast majority is extracted using fossil fuels, which create pollutants and GHG emissions. The development of clean hydrogen capacity, such as green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials, will require massive investments in areas including infrastructure, electrolysis, and transport.
Karl Nehammer, EIB Vice-President, added:
“Green hydrogen is a cornerstone of Europe’s transition to a competitive, climate-neutral and secure energy system. By supporting green hydrogen production at industrial scale, we are strengthening Europe’s competitiveness, reinforcing our energy security and helping decarbonise refining by replacing fossil-based hydrogen with renewable hydrogen.”
