Chemicals & Materials will be the group’s growth engine and will be substantially strengthened, expanded and diversified as OMV aims to establish a globally leading position in circular economy solutions.

In particular, the company will expand in attractive markets, especially in North America and Asia, as well as building sustainable polyolefin production, representing up to 40% of total European polyolefin output.

The group already has base chemical capacity of 7 million t/y and about 6 million t/y of polyolefins. It is currently building a new propane dehydrogenation plant in Kallo, Belgium, which is due to start up in 2023, and will be key in expanding OMV’s monomer position in Europe.

Its industrial-scale chemical recycling plant, based on proprietary ReOil technology, is planned for 2026 and will help to replace virgin feedstocks with sustainable alternatives. In polymers, debottlenecking projects will drive growth in compounding and mechanical recycling.

Through its majority stake in Borealis, OMV is also able to use the Borouge joint venture with Abu Dhabi National Oil (ADNOC) as the main vehicle for meeting growing demand in the Middle East and Asia. Last November, Borouge signed the final investment agreement for the Borouge 4 complex at Ruwais, Abu Dhabi, which will comprise a 1.5 million t/y ethane cracker and two PE plants producing 1.4 million t/y.

In North America, expansion will be driven by the Baystar joint venture with TotalEngeries and its respective ethane and PE contributions.

Overall, the projects will increase monomer sales by 35% and polyolefin sales by about 30%. “Chemicals & Materials will not only be our growth engine but balance sustainability, risk and returns, and strengthen our resilience against market dynamics,” said Alfred Stern, CEO and chairman of the executive board.

In refining, OMV will strive to become a leading European provider of sustainable fuels and chemical feedstock, expanding production to 1.5 million t/y by 2030. Fossil fuel throughput will decline in line with changing demand patterns, while integration with the Chemicals & Materials business will be driven forward and deepened. 

The integrated refineries in Schwechat, Austria, and Burghausen, Germany, will be optimized to maximize fossil resources and raise the share of sustainable feedstock.

In line with its ambition to reach net zero emissions by no later than 2050, OMV will reduce its oil and gas production by about 30% and about 15% respectively by 2030, completely ceasing production for energy use by 2050.

At the same time, OMV will invest about €5 billion in developing low-carbon businesses such as geothermal energy and carbon capture and storage to reduce its greenhouse gas emissions. It will also expand its solar and wind power generation for captive use and explore opportunities in gas and hydrogen storage solutions.

The Vienna-headquartered group said it expects its transformation strategy to also bring higher profitability and improved earnings.

Author: Dede Williams, Freelance Journalist