Motor Oil's energy transition plan in Greece and the Balkans
Ross Hastie
Posted on: 26 October 2023
Enlit visited Athens to find out more about Motor Oil’s ambitions to lead the energy transition in Greece, the Balkans and the Eastern Mediterranean
The energy transition cannot happen without the participation and buy-in of traditional oil and gas companies. Enlit on the Road visited Athens to find out about Motor Oil’s ambitions to lead the energy transition in Greece, the Balkans and the Eastern Mediterranean.
We spoke with Motor Oil Group’s EU Affairs Manager, Konstantinos Chatzifotis, to understand the company's plan to facilitate the energy transition in a sensitive geopolitical region.
Chatzifotis explained how the company - which has operated in Greece since 1970 - aims to make a significant impact on the energy landscape, emphasizing energy supply security, energy transition facilitation, and shareholder sustainability.
Their strategy is grounded in four fundamental pillars: refinery optimization, renewable energy production, electromobility, alternative fuels, and a focus on circular economy initiatives.
Read more:
Enlit on the Road: Athens
Oil & Gas industry's energy transition
Hydrogen news and insights
Strategic investments for sustainable growth
Central to Motor Oil's transition plan is an investment of €4 billion by 2031, with €1.5 billion allocated for the maintenance and improvement of their refinery and logistics, with a focus on digitalisation and efficiency.
“2.5 billion euros will be invested in renewables, hydrogen, petrochemicals, and other production,” says Chatzifotis.
“We believe that this is one of the biggest transition plans in the area. And we expect that this will be a turning point for Greece and the wider area, to move towards new fuels, cleaner energy…and leave behind this old way of providing energy.”
A unique geopolitical context
Greece and the broader Balkans have a unique geopolitical position within the global energy landscape. Greece finds itself somewhat isolated from the central energy markets of the continent. This isolation is further compounded by the absence of direct connections to energy networks and pipelines on the mainland.
Furthermore, Greece's proximity to regions outside the European Union poses a direct challenge by exposing the country to direct competition from countries not bound by the same stringent EU regulations. Greece must also navigate the complex web of geopolitical tensions in the region, from the ongoing conflict in Ukraine to the persistent instability in the Middle East.
Balancing legacy and future
Greece faces the delicate task of balancing its historical reliance on lignite and fossil fuels with the imperative of embracing renewable energy sources.
“The big challenge of [integrating] renewable energy is ensuring access to energy and access for everybody. So, this is not an easy equation. We, as Motor Oil, believe in transition, and we believe in it [being] measurable.
"We are a company in transition. And I think that our company gives the example, sets milestones, on how this transition can be made through our industry, oil and gas."
From strategy to implementation: Projects
Chatzifotis believes that “to go from theory to practice, you have to overcome two key factors.
“First is the entrepreneurial risk that the transition from traditional to novel poses. And second is to give the incentive… the incentive to our board of directors to take a decision to invest.
“And in that respect the last two-and-half years, we have succeeded to ensure key EU funding for our projects.”
One notable project is Ephyra, which involves the construction and operation of a 30MW electrolyzer for green hydrogen in Motor Oil's refinery in Corinth.
Another project, Trieres, aims to build a hydrogen ecosystem, called the ‘small hydrogen valley'.
Both of these two projects have been funded by Clean Hydrogen Partnership, a partnership between the European Commission and Hydrogen Europe, under the umbrella of Horizon Europe.
“Very recently, you got a very positive result for the project was submitted to the Innovation Fund…for the implementation of a carbon capture system in our steam reformer in our refinery,” notes Chatzifotis.
Watch the full video interview to find out more about other energy projects Motor Oil is involved in, including the installation of a Carbon Capture System and the first two publicly accessible hydrogen refuelling stations in Greece, financed under the Connecting Europe Facility.
