Concerning renewable energy generation, the report mentions the development of onshore wind farms and solar PV farms, with a total capacity of approximately 200 MW, connected to the DSO/ TSO grid.
The project allows to cover part of the internal demand of the Petromidia refinery & of the retail network in a cost-efficient manner by developing on-site solar PV generation capacities Onsite roof-mounted PV solar panels will be installed within 100 stations by 2025 (gradual expansion to the entire network targeted by 2030) with an average capacity of 25 kW per station A solar PV park will be developed on the Petromidia platform with a capacity of 8 MW.
Regarding the EV charging network, the project involves the expansion of the EV charging station infrastructure, reaching a network electrification of 50% by 2025 and full coverage by 2030. Gradual expansion outside the network is envisaged, targeting retail chains, the hospitality sector & offices (100 locations by 2030).
Besides the decarbonization package, a major investment of 2022 was the cogeneration plant on the Petromidia platform, which is expected to be fully operational by the end of 2023, a project that complies with the highest technological standards of energy efficiency and environmental protection.
One of the major investment projects in progress at the end of 2022 (but not part of the decarbonization projects portfolio) is the cogeneration plant on the Petromidia platform. The plant will have a major role in stabilizing the production and distribution of electricity in the region, by ensuring the energy needs of the platform, but also by injecting the surplus electricity into the national grid. The new unit will comply with the highest technological standards of energy efficiency and environmental protection and will be built in partnership with the Media Thermal Power Plant - currently owned by the Ministry of Energy (56.58%) and KMG International (43.42%).
Rompetrol Energy, the operator of the future cogeneration plant, is majority owned by the Kazakh -Romanian Energy Investment Fund (KREIF), along with Rominserv and the Midia Thermal Power Plant. The project, worth over $140 million, is financed by the Kazakh -Romanian Energy Investment Fund (KREIF) and will generate, annually, about $11 million in taxes paid to the state budget. The project is a brownfield investment and will integrate the assets of the Midia Thermal Power Plant, as well as its staff, for the operation of the new plant's equipment. According to its technical configuration (two highly efficient Siemens SGT-750 turbines and two heat recovery boilers), the new plant will generate around 80 MW of electrical energy, of which the largest amount will be used to cover the necessary power for the Petromidia platform, as well as the technological steam for the Refinery up to 180 t/hour, and the necessary hot water for the heating system of Năvodari city – up to 20 MWt/hour.
Construction began in May 2021 and the new plant is expected by August 2023. As of December 2022, the project is in the execution phase with a progress of 84% in the design and supply of equipment, while the progress for the actual construction of the technological assembly is at 27%.
Rompetrol Rafinare, operating the 2 refineries of the Group and representing 44,6% of the local refining capacity, continued to play a significant role in the energy security of the region, with a quantity of 5.15 million tons of raw materials purchased and 4.93 million tons of products sold by Petromidia refinery across its sales divisions.
Rompetrol Rafinare alone contributed $1.56 billion to Romania's fiscal budget in 2022.
The total level of taxes paid by the Group raised to $1.99 billion.
92% waste recovery rate on the Petromidia platform, a rate constantly above 90% in the past 5 years.
In the period 2021-2022, Rompetrol made significant contributions exceeding $2.5 million to local communities via financial support, fuel donations, and fundraising events. Over half of these contributions were designated for the communities of Constanța and Prahova, the central locations of the Group's main operations in Romania.
“We're committed to doing our business responsibly and transparently while providing safe, reliable, and sustainable energy to our customers in the Black Sea region. Rompetrol is a pillar of economic stability and energy security in the region, contributing to the export balance of Romania, being a significant contributor to the state budget, and a large employer. Our ESG aspects lay at the foundation of our business and, year by year, we continued to decrease our emissions, energy, and water consumption. We remain steadfast in our dedication to the social aspects, with care for our employees, communities, and stakeholders at large”, says Ilyas Kuldzhanov, Chief Executive Officer of KMG International NV.
As part of its long-term sustainability strategy, the Group identified four strategic options for addressing climate change and energy transition within KMG International's operations. The first option identified is for the company to remain specialized in conventional oil & gas distribution, which would involve consolidating current activities and exploiting the full potential of the fossil fuel value chain, with a diversification degree below 5% by 2030.
As a second option, KMGI would apply a diversification rate of 5 -15% by 2030 and becomes a diversified downstream player. This means that the Group continues to focus on oil and gas activities but also seeks gradual diversification, including second-generation biofuels, and the production and supply of renewable electricity. In the third scenario, the Group is set to become an energy supplier (15 -40% diversification rate by 2030), which means holding a stronger position in the renewable energy segment, by providing energy not only for the B2B channel but also for B2C and complementing its offer with energy solutions from renewable sources.
The fourth strategic option considered was for KMG International to become a low-carbon energy supplier (100% diversification by 2030), with a complete transition to a low-carbon activity and full removal from the fossil fuel sector, stopping its refining activity as we know it today.
The next logical step will then be to make the transition to an energy supplier by 2035 -2040.
”We have classified our future projects into medium and long-term initiatives, our main immediate priorities addressing the production of biofuels and the extension of the electrical energy value chain. A portfolio of 9 projects has been shortlisted following the assessment of more than 40 decarbonization solutions which can be implemented in the medium and long -term”, according to the company.
