OMV gets €450m EIB loan for Austria green hydrogen project

The European Investment Bank has approved a €450 million ($515 million) loan to support the construction of what will become Austria's largest green hydrogen production facility, strengthening the country's renewable energy infrastructure while helping to decarbonise industrial operations.

The financing has been awarded to integrated energy and chemicals company OMV, which is building the plant in Bruck an der Leitha, Lower Austria.

The loan accounts for almost three-quarters of the project's estimated €600 million ($700 million) cost and represents the EIB's largest investment in Austria's energy sector to date.

Construction of the facility has already begun, with commissioning scheduled for the end of 2027. At the heart of the project will be a 140MW electrolyser powered entirely by renewable electricity.

Once operational, the plant is expected to produce up to 23,000 tonnes of renewable hydrogen each year, placing it among Europe's largest green hydrogen facilities and making it the biggest of its kind in Austria.

The hydrogen will be transported via a new 22km pipeline to OMV's Schwechat refinery, where it will gradually replace the hydrogen currently produced from fossil fuels and used in refining operations.

Low carbon future

The investment is expected to reduce the refinery’s direct CO₂ emissions by up to 150,000 tonnes annually – around 10% of current direct emissions – and create the basis for future production of sustainable aviation fuels and other low-carbon products.

Speaking during a visit to the construction site, Karl Nehammer, vice-president of the EIB, described renewable hydrogen as a key component of Europe's future energy system.

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"Green hydrogen is a cornerstone of Europe's transition to a competitive, climate-neutral and secure energy system. By supporting green hydrogen production at industrial scale, we are strengthening Europe's competitiveness, reinforcing our energy security and helping decarbonise refining by replacing fossil-based hydrogen with renewable hydrogen,” Nehammer said.

The investment forms part of the EIB's wider strategy to accelerate the deployment of clean technologies across Europe.

Alongside supporting industrial decarbonisation, the bank says the project will strengthen the European electrolyser supply chain and contribute to the objectives of both the European Green Deal and the REPowerEU programme, which aims to reduce the bloc's dependence on imported fossil fuels.

Sustainable strategy

For OMV, the project represents a significant milestone in its long-term decarbonisation strategy. Under its Strategy 2030 programme, the company is expanding production of renewable hydrogen and renewable fuels as it works towards achieving net-zero emissions by 2050.

“The EIB’s loan commitment is a strong signal of confidence in OMV’s transformation strategy and our ability to deliver large-scale projects that drive industrial decarbonisation,” said deputy chairman of the OMV board, Reinhard Florey.

Florey said the investment is of strategic importance for both Austria and Europe: “By producing green hydrogen in Austria, we are strengthening Europe’s energy value chain, enhancing energy security and contributing to a more sustainable energy system.

“The construction of one of Europe’s largest green hydrogen plants marks a major milestone in the decarbonisation of our industrial processes.

“Once operational, the facility will make a significant contribution to reducing CO₂ emissions at our Schwechat refinery and underscores our ambition to actively shape the energy transition in Austria and across Europe.”