Baku, March 17, AZERTAC

Austria’s OMV said it aims to become carbon neutral by 2050 at the latest as it shifts away from producing oil and gas to making speciality chemicals, plastics and sustainable fuels, Reuters reports.

OMV is following other oil and gas companies in Europe, including Shell and BP, in setting a net zero carbon target by 2050, including emissions from the use and burning of its products by customers.

OMV said it expects a clean current cost of supplies (CCS) operating result of at least 6 billion euros by 2030, the same level as record earnings last year.

The company said it is targeting an increase in the production of sustainable fuels and chemical raw materials to 1.5 million metric tonnes per year by 2030, including 700,000 tonnes of sustainable aviation fuel.

By 2030 OMV said it aims to reduce crude oil production by around 30% and natural gas production by about 15%.

By 2050, it wants to have stopped its oil and gas production, which is due to reach 470,000 barrels of oil equivalent per day in 2022, for energy use, but might still produce oil to make chemicals, Chief Executive Alfred Stern said.

The majority owner of chemicals group Borealis said it wants to become a leading maker of plastics for the energy, car, packaging, health and construction sectors and it will eventually depend on renewable feedstocks not oil.

It hopes pilot projects on non-crude oil feedstocks such as used cooking oil, CO2, waste and recycled fossil oil will deliver future production. Unlike many European rivals, OMV will not invest in renewable power.

OMV plans annual investments (capex) of 3.5 billion euros per year, at least 40% of which is intended for low-carbon products. Last year, it spent 2.65 billion euros.