Neutralization Measures

We aim to reduce our carbon footprint to net zero by 2050 at the latest. While the biggest drivers on this journey will be decreasing our fossil fuel sales and increasing our zero-carbon product sales, we also recognize that neutralization measures will be necessary. Neutralization measures include, but are not limited to, Carbon Capture and Storage (CCS), Carbon Capture and Utilization (CCU), and Bioenergy with Carbon Capture and Storage (BECCS). By 2030, we aim to establish CCS capacities of around 5 mn t per year as our main neutralization measure toward achieving our targets.

Management and Due Diligence Processes

Offsetting Emissions

OMV offers voluntary carbon offsetting to customers and works closely with ClimatePartner, an internationally trusted service partner based in Munich. ClimatePartner selects certified carbon offset projects and ensures that OMV customers who use this option are able to contribute a dedicated amount to these projects. The criteria for these carbon offset credits to be used for voluntary offsetting are clearly defined in OMV’s GHG Management Framework. In 2023, the biggest contributors in terms of CO₂ offsets in OMV’s portfolio were wind and solar energy projects in India and China, and forest protection in Brazil. In 2023, the climate protection projects used for CO₂ offsetting consisted of: hydropower projects (14.38%) in Bulgaria, Turkey, India, and China; solar projects (9.13%) in China and India; wind energy projects (46.26%) in Bulgaria, Turkey, China, and India; nature-based projects (18.35%) in Rumania and Brazil; gas/heat recovery and biogas projects (11.9%) in Turkey, Bulgaria, and Pakistan. These carbon offsets are verified according to one or more of the following internationally recognized standards: Gold Standard (GS), Verified Carbon Standard (VCS), Certified Emission Reductions (CER), and Climate, Community & Biodiversity Standard (CCBS).

None of these voluntary carbon offsets have been accounted to contribute toward achieving OMV’s GHG reduction target.

Carbon Capture and Storage (CCS) and Utilization (CCU)

In line with the aim of becoming a net-zero company, OMV will invest in carbon capture and storage (CCS), leveraging existing assets and capabilities, and contribute to a more sustainable society.

In order to reduce greenhouse gas emissions, OMV Energy will invest around EUR 5 bn in the development of low-carbon businesses, i.e., geothermal energy, renewables and carbon capture and storage (CCS). For CCS, we intend to offset absolute emissions both from captive use and third parties. The target for 2030 is to grow to 5 mn metric t a year. We will explore CCS solutions based on our subsurface knowledge, capabilities, and asset base. In addition to the license that we hold together with Aker BP, we are working on further license applications and opportunities in this area. We collaborate on these activities in line with applicable regulatory and legal requirements in conjunction with industry and research partners.

OMV aims to capture CO₂ and ideally use it as a resource. Carbon capture and utilization technologies, such as capturing biogenic CO₂ emissions, hydrating the CO₂, and then reusing it as a chemical or aviation fuel, are crucial to reducing overall atmospheric emissions and fostering circularity. However, achieving the goals of the Paris Agreement does not just require reducing our own emissions but also helping reduce atmospheric emissions from other sources. Thus, our CCS and CCU projects include, but are not limited to, capturing our own emissions.

2023 Actions

• Currently, OMV’s customers can voluntarily offset the carbon footprint resulting from using all products they purchase from us, such as diesel, gasoline, bitumen, heating oil, and natural gas. OMV GAS offers this service in all markets. We recognize the high and ever-increasing customer demand for this option. OMV Fuels Sales customers can voluntarily offset their carbon footprint based on the use of gasoline or diesel, as well as extra-light heating oil and bitumen, in all countries where we operate. Customers of OMV Retail Mobility & Convenience (our filling stations) are able to offset 20% of the carbon footprint when opting for MaxxMotion Performance Fuels in Austria, Romania, Slovakia, and Hungary, without any surcharge. Our OMV Card customers can use their OMV Card with the Routex function to offset the carbon footprint of the diesel and gasoline they purchase.
• Aker BP and OMV (Norge) AS have entered into a collaboration agreement for carbon capture and storage (CCS) and been awarded a license for CO₂ storage in accordance with the CO₂ Storage Regulations on the Norwegian Continental Shelf (NCS). The license awarded to Aker BP and OMV is located in the Norwegian North Sea and is named Poseidon. Aker BP (50%) and OMV (Norge) AS (50%) have interest in the license, which will be operated by Aker BP. The license comes with a work program that includes a 3D seismic acquisition and a drill or drop decision by 2025. The Poseidon license could potentially provide storage of more than 5 mn t of CO₂ per year. The intention is to inject CO₂ captured from multiple identified industrial emitters in northwest Europe, including from Borealis’ various industrial sites in Europe.
• Borealis entered into a collaboration with the University of Helsinki, Finland, as well as several other academic and industry partners, on a joint research project focusing on direct carbon dioxide (CO₂) capture from the air. This project is part of the Business Finland-funded SPIRIT Program (Sustainable Plastics Industry Transformation). Co-founded by Borealis, the program seeks to bring about a circular and net zero transformation of the plastics value chain.

Outlook

As part of our strategy, we foresee developing CCS storage capacity of around 5 mn t per year CO₂ net at OMV by 2030. In addition, OMV Petrom will test an innovative technology for CCU at the Petrobrazi refinery. OMV Petrom is a partner in an ambitious European project to address the problem of CO₂ emissions through carbon capture and conversion technologies. Over a five-month period in 2024, they will capture the CO₂ from flue gasses released by the cogeneration unit, further converting them electrochemically into a marketable product.