Austrian oil, gas, and chemicals company to pivot to geothermal
Austria-based OMV will be transitioning their oil and gas business to geothermal and other low-carbon alternatives as part of the Strategy 2030 roadmap.
OMV, an integrated oil, gas, and chemicals company based in Vienna, Austria, has announced Strategy 2030 – a long-term road map that aims to achieve net-zero emissions by 2050. Part of this strategy is to eventually cease oil and gas production and develop geothermal energy and carbon capture and storage (CCS) assets.
“If we want to maintain and expand living standards around the world while ensuring the survival of our society, we must move to a more sustainable way of doing business. For this reason, OMV will re-invent essentials for sustainable living.” said OMV CEO and Chairman of the Executive Board Alfred Stern.
Gradual transition to sustainable energy
OMV’s transition to sustainable energy will be done gradually and according to specific and time-based milestones. Crude oil production will be reduced by around 30% and natural gas production by around 15% by 2030. Investment in oil ang as production will continue until 2026, after which it will decrease significantly. By 2050, all production of oil and gas for energy use will be completely stopped.
This effort will be couple with an investment of around EUR 5 billion in geothermal energy and carbon capture and storage (CCR) projects. Geothermal energy production is expected to reach up to 9 TWh by 2030. OMV anticipates having an advantage in this field because of their extensive subsurface and surface expertise, existing reservoirs and infrastructures, and strong market growth in Europe.
OMV will also be undertaking other efforts to reduce its CO2 footprint. This includes phasing out routine flaring and venting of associated gas from oil production and expansion of solar and wind power generation to at least 1 TWh.
Other sustainability efforts
The other business segments of OMV, Chemicals & Materials and Refining & Marketing, will also be part of Strategy 2030. Sustainable polyolefin production, development of a portfolio of sustainable premium fuels, and growth of the non-fuel business sector will contribute towards the overall goals.
OMV has had a solid financial track record in recent years and expects its transformation strategy to lead not only to strong sustainability performance, but also to higher profitability and improved earnings quality.
“Also from a financial perspective, our OMV Strategy 2030 is a winning strategy in all relevant areas, be it business, sustainability, and our continued focus on attractive returns for shareholders. Our move towards chemicals is the perfect combination to reduce our carbon footprint while remaining a highly profitable growth company with a progressive dividend policy.” said OMV CFO Reinhard Florey.
A short video summarizing Strategy 2030, seen below, has been published in the OMV YouTube page.