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Highlights:
- John Wood Group awarded engineering, procurement, and construction management (EPCm) contract for OMV Petrom's Petrobrazi refinery upgrade in Romania.
- The project will establish the region's first major sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) production facility.
- The development aligns with Europe’s 2030 target for 6% SAF usage at EU airports, supporting the transition to low-carbon fuels.
John Wood Group PLC (LSE:WG) has secured a significant follow-on contract with OMV Petrom to enhance the Petrobrazi refinery in Romania, enabling the production of sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO). This initiative marks a milestone as the first major facility for sustainable fuel production in Southeast Europe.
A Strategic Collaboration for Low-Carbon Energy Transition
Building on its prior work on front-end engineering design (FEED) for the refinery, Wood will now undertake engineering, procurement, and construction management (EPCm) responsibilities. The project includes installing a new bio-hydrotreater unit and relevant storage facilities, supporting OMV Petrom’s efforts to diversify its operations and meet growing demand for cleaner energy solutions.
OMV Petrom’s Petrobrazi refinery will leverage Honeywell UOP Ecofining technology to produce SAF and HVO. These advanced fuels are critical to reducing carbon emissions in aviation and other industries.
Ken Gilmartin, Wood’s chief executive, emphasized the importance of the partnership, stating, “This significant contract award builds on our longstanding relationship with OMV Petrom. We are proud to continue partnering with them to futureproof their infrastructure and enable the production of low-carbon fuels.”
Europe’s Ambitious Sustainability Goals
The Petrobrazi project aligns with Europe’s ambitious environmental targets, which aim for SAF to account for 6% of fuel used at EU airports by 2030, escalating to 70% by 2050. Sustainable aviation fuel has emerged as a key component in the aviation sector's strategy to decarbonize, offering a viable alternative to traditional fossil-based jet fuels.
Industry Implications and Future Prospects
This development signifies a pivotal step for Southeast Europe in contributing to global decarbonization goals. For John Wood Group, the contract reinforces its expertise and growing presence in renewable and sustainable energy solutions. It also highlights the increasing demand for engineering and construction expertise in transitioning existing infrastructure toward greener alternatives.
The project represents a broader shift within the energy sector, with refineries and fuel producers pivoting toward sustainability to meet regulatory demands and societal expectations for reduced emissions.
Shares in John Wood Group rose slightly to 65.7p following the announcement, reflecting positive investor sentiment towards the company's expanding role in the energy transition.
