OMV has received a €450m ($512m) loan from the European Investment Bank (EIB) to support the construction of its flagship green hydrogen production facility in Bruck an der Leitha, Lower Austria.

The new plant, expected to be operational by the end of 2027, is designed to produce up to 23,000t of renewable hydrogen per year. It will use a 140MW electrolyser powered entirely by renewable electricity.

The EIB financing, described as its largest-ever loan for Austria’s energy sector, will cover approximately 75% of the project’s total estimated cost of €600m. In January, OMV received up to €123m in production funding from Austria Wirtschaftsservice (aws) for the same project.

Once completed, the facility will become the largest of its kind in Austria and rank among the five largest green hydrogen plants in Europe.

EIB vice-president Karl Nehammer said: “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.

“This investment also lays the foundation for the future production of sustainable aviation fuels, supporting the EU’s climate and energy security objectives.”

Hydrogen from the new plant will be transported via a 22km pipeline to OMV’s Schwechat refinery near Vienna.

The renewable hydrogen will replace conventional fossil-based hydrogen currently used in refining processes.

According to OMV, this substitution is projected to lower direct CO₂ emissions at the Schwechat refinery by roughly 150,000t annually. This equates to approximately 10% of the refinery’s present direct emissions.

The investment is intended to improve the sustainability of fuel and chemical products at the Schwechat site, as well as to provide groundwork for the development of sustainable aviation fuels in the future.

OMV chief financial officer and executive board deputy chairman Reinhard Florey said: “The construction of one of Europe’s largest green hydrogen plants marks a major milestone in the decarbonisation of our industrial processes and underscores our ambition to actively shape the energy transition in Austria and beyond.”

OMV’s Strategy 2030 includes the expansion of production capacity for renewable fuels and sustainable chemical feedstock, with a stated aim to reach approximately 900kt by the end of this decade.

The group’s ongoing projects include this new facility in Austria, as well as additional renewable hydrogen and fuel investments in Romania, among others.

OMV has set a target to achieve net zero emissions by 2050.