Austrian energy company OMV has confirmed it will proceed with its planned green hydrogen project independently after Abu Dhabi-based renewable energy company Masdar withdrew from the venture.
OMV and Masdar announced their partnership in November last year, with Masdar expected to contribute several hundred million euros to the project’s development.
OMV said the withdrawal would not affect the project, which is estimated to require about €600 million ($689 million) in total funding. The European Investment Bank has already approved a €450 million loan, while the Austrian government is expected to provide additional public support.
According to Salzburger Nachrichten, which first reported Masdar’s departure, OMV attributed the decision to strategic changes in Abu Dhabi. OMV did not provide further details, while Masdar had not immediately commented on the decision.
The planned facility will have an electrolysis capacity of 140 megawatts and is expected to begin operations by the end of 2027. Once completed, it could produce up to 23,000 tonnes of green hydrogen annually.
The plant is expected to become Austria’s largest green hydrogen facility and rank among the five largest of its kind in Europe.
Despite Masdar’s exit from the project, OMV maintains strong business ties with Abu Dhabi. ADNOC, the United Arab Emirates’ state oil company, holds a 24.9% stake in OMV.
OMV and ADNOC recently combined their chemicals operations under Borouge International, creating what they describe as the world’s fourth-largest plastics producer.
Goodness Anunobi
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